Sub-Sahara Africa’s Higher Education: Financing, Growth, and Em-ployment

Abstract

Although higher education plays a vital role in the socio-economic development of Sub-Saharan Africa, enrollment in universities in the region is unexpectedly low compared to other regions. However, Sub-Saharan African countries have made strides in increasing access to higher education amidst constraints and challenges. The efforts have led to increases in enrollment and what many countries did not anticipate is the increase in unemployment from the greater output of students. In this study, we use panel data from eleven Sub-Saharan African countries for 2000-2018 to analyze the relationship between higher education and unemployment. A panel fixed effect model was estimated, and the results indicate that unemployment has a negative and significant effect on higher enrollment. Besides, higher education enrollment has a significant but negative effect on employment. Per capita income significantly affects enrollment into higher education and has the expected sign. The estimates further show that government expenditures on higher education play a significant role in the demand for places in higher education.