Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression

Mathiwos Kifle Wonit

doi:doi:10.11648/j.iecon.20260103.12

Research Article |

| Peer-Reviewed

Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression

Mathiwos Kifle Wonit^*

Published in Innovation Economics (Volume 1, Issue 3)

Received: 9 July 2026 Accepted: 21 July 2026 Published: 29 September 2026

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Youth unemployment remains a major social and economic challenge in urban Ethiopia, where young people face limited job opportunities, skill mismatch, and weak labor-market support systems. This study examines the determinants of urban youth unemployment in Bonga Town, Kaffa Zone, Ethiopia, using cross-sectional data collected from 211 youth respondents and key informant interviews. Descriptive statistics and binary logistic regression were employed to identify the factors influencing employment status. Descriptive statistics show that majority of the youths in the town are male, unmarried, with in the age group 0f 24-26 years, and graduates of college and above. Further, the results from logistic regression show that gender, migration status, average monthly family income, education level, number of skill-improvement training attempts, social networks, skill mismatch, and job information access significantly affect youth employment status. The findings suggest that urban youth unemployment is shaped by both individual characteristics and structural labor-market constraints. Based on these results, the study recommends gender-responsive employment interventions, expanded skills training, improved access to job information, stronger social support mechanisms, and policies that reduce rural-urban migration pressure through balanced local development. These measures are essential for reducing youth unemployment and promoting inclusive urban growth in Bonga Town and similar urban settings in Ethiopia.

Published in	Innovation Economics (Volume 1, Issue 3)
DOI	10.11648/j.iecon.20260103.12
Page(s)	134-145
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Bonga, Determinant, Unemployment, Youth

References

[1]	Abdulahi, A. (2023). Socio-economic and demographic factors that determine urban youth unemployment in Somali Regional State, Ethiopia. Preprints.org. https://doi.org/10.20944/preprints202308.1881.v1
[2]	Abdurahman, M., & Ahmed, A. (2021). Demographic and Socio-economic Determinants of Urban Youth Unemployment in West Hararghe Zone, Oromia National Regional State, Ethiopia. Horn of African Journal of Business and Economics (HAJBE), 4(2), 18-41.
[3]	Baah-Boateng, W. (2013). Determinants of unemployment in Ghana. African Development Review, 25(4), 385–399. https://doi.org/10.1111/1467-8268.12037
[4]	Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.
[5]	Berhe, M. W. (2021). Empirical analysis of urban youth unemployment in Ethiopia. African Development Review, 33(1), 104–116. https://doi.org/10.1111/1467-8268.12514
[6]	Blanchard, O. (2018). Macroeconomics (7th ed.). Pearson.
[7]	Borjas, G. J. (2020). Labor economics (8th ed.). McGraw-Hill Education.
[8]	Chaudhuri, S., & Mukhopadhyay, U. (2010). The Harris–Todaro migration model and introduction of the informal sector. In S. Chaudhuri & U. Mukhopadhyay, Revisiting the Informal Sector: A General Equilibrium Approach (pp. 33–53). Springer. https://doi.org/10.1007/978-1-4419-1194-0_3
[9]	Dantwala, M. L. (1975). A profile of poverty and unemployment in 12 villages. Indian Journal of Agricultural Economics, 30(2), 1-17.
[10]	Denano, T., Sintayehu, S., Netsanet, A., & Eyasu, A. (2023). Youth unemployment and its main determinants in Ethiopia. EQA – International Journal of Environmental Quality, 55(1), 23–32. https://doi.org/10.6092/issn.2281-4485/16710
[11]	Ethiopian Statistical Service, (2024). What is the Youth Unemployment Rate in Ethiopia? ESS. https://ess.gov.et/what-is-the-youth-unemployment-rate-in-ethiopia/
[12]	Ethiopian Statistical Service. (2023). Population size of towns by sex, region, zone and weredas: July 2023. Addis Ababa, Ethiopia.
[13]	Fetene, G. D., & Bule, G. G. (2026). Determinants of Urban Youth Unemployment in Borena Zone: The Case of Yabalo Town. JESSD, 9(1), 1-12.
[14]	Friedman, M. (1968). The role of monetary policy. American Economic Review, 58(1), 1-17.
[15]	Getaneh, G. (2020). Determinants of Urban Youth Unemploymen (A Case in Central Gondar Zone) (Doctoral dissertation).
[16]	Greene, W. H. (2002) Econometric Analysis.
[17]	Guta, M. D., Gebre-Egziabher, K. A., & Kassahun, M. (2025). The ramifications of youth unemployment in the Gurage Zone, Central Ethiopia (economic, social, and political). Discover Global Society, 3(1), 108.
[18]	Herkenhoff, K., Phillips, G. M., & Cohen-Cole, E. (2021). The impact of consumer credit access on self-employment and entrepreneurship. Journal of financial economics, 141(1), 345-371.
[19]	Horty, Y., & Sari, F. (2019). The role of spatial and skill mismatches: explaining long-term unemployment in Paris. Regional Studies, 53(2), 283-296.
[20]	Internation Labour Organization (ILO). (2012), An Analytical Study of the Labour Market for Global Employment Trends for the Youth.
[21]	Internation Labour Organization (ILO). (2004). Improving Prospects of Young Women and Men of Work. A guide To Youth Employment, Geneva.
[22]	Kebie, B. A. (2025). Population, job creation, and production in Ethiopia: Unlocking the nation's development potential. SSRN. https://doi.org/10.2139/ssrn.5312876
[23]	Kebie, Y. B., & Tekalign, A. M. (2023). Determinants of Urban Unemployment in Injibara Town, Awi Zone, Amhara Region, North Western Ethiopia. Journal of Interdisciplinary Studies, 7, 900-909.
[24]	Keynes, J. M. (1936). The general theory of employment, interest and money. Macmillan.
[25]	Kilimani, N. (2017). Youth employment in developing economies: Evidence on policies and interventions. IDS Bulletin, 48(3), 13–32. https://doi.org/10.19088/1968-2017.124
[26]	Kostoris Padoa Schioppa, F., & Lupi, C. (2002). Family income and wealth, youth unemployment and active labour market policies. International Review of Applied Economics, 16(4), 407–416. https://doi.org/10.1080/02692170210161147
[27]	Lechner, M., & Wunsch, C. (2009). Are training programs more effective when unemployment is high? Journal of Labor Economics, 27(4), 653–692. https://doi.org/10.1086/644976
[28]	Mafiri, M. I. (2005). Socio-economic impact of unemployment (Doctoral dissertation, University of Pretoria).
[29]	Marx, K. (1867). Capital: A critique of political economy (Vol. 1). Penguin Classics. (Original work published 1867)
[30]	Mekonnen, M. A. (2021). The Causes of youth unemployment among tertiary graduates in Ethiopia (Doctoral dissertation, KDI School).
[31]	Mezgebo, T. G., Weldegebriel, Z. B., Weldeselassie, S., Legas, H. A., & Meles, L. (2025). Empirical Review: Youth Employment Policies in Ethiopia. PEP, Partnership for Economic Policy.
[32]	Mohammed Shuker, F., & Hashim Sadik, H. (2024). A critical review on rural youth unemployment in Ethiopia. International Journal of Adolescence and Youth, 29(1). https://doi.org/10.1080/02673843.2024.2322564
[33]	Mohamud, Y. A., Ma’rof, A. A., Mohamed, A. M., & Gure, M. M. (2023). The effect of population growth on unemployment youth in Somalia. International Journal of Academic Research in Business and Social Sciences, 13(17). https://doi.org/10.6007/IJARBSS/v13-i17/19826
[34]	Msigwa, R. and Kipesha, E. F. (2013). Determinants of Youth unemployment in Developing Countries: Evidences from Tanzania. Journal of Economics and Sustainable Development, Vol. 4, No. 14.
[35]	Mulatu, G. (2022). Factors affecting urban youth unemployment in Ethiopia: The case of Bale-Robe Town, Bale Zone, Ethiopia. SunText Review of Arts & Social Sciences, 3(3), 145. https://doi.org/10.51737/2766-4600.2022.045
[36]	Putra, R., Tanjung, A. R., & Renaldo, N. (2024). Open Unemployment Rate Based on Age Group and Residence Area using Chi-square Analysis Period 2015-2018. Reflection: Education and Pedagogical Insights, 2(1), 20-25.
[37]	Riaz, I., & Batool, M. (2018, March). Unemployment; Factors Affect Educated Youth of Multan, Pakistan. In 16th International Conference on Statistical Sciences (p. 139)
[38]	Rodokanakis, S., & Vlachos, V. A. (2012). Measuring the unemployment risk in Northern Greece from the LFS micro-data during the period 1994-2006. Review of Economic Analysis, 4(2), 224-246.
[39]	Šabanagić-Hajrić, S., & Alajbegović, A. (2015). Impacts of education level and employment status on health-related quality of life in multiple sclerosis patients. Med Glas (Zenica), 12(1), 61-67.
[40]	Sedletzki, V., & Perrault, N. (2016). Legal minimum ages and the realization of adolescents’ rights.
[41]	Shina, E. S. (2020). Determinants of youth unemployment: The case of Hawassa city. Journal of Business and Management, 22(4), 01-07.
[42]	Shita, A., & Dereje, M. (2018). Determinants of urban youth unemployment: Evidence from east Gojjam Zone. Ethiopia, Department of economics, Debre Markos University.
[43]	Sy, I., & Kouame, A. K. E. (2020). A gender analysis of the determinants of youth unemployment in Côte d’Ivoire. In N. Edomah (Ed.), Regional development in Africa. IntechOpen. https://doi.org/10.5772/intechopen.85287
[44]	Tegegne, T. K. (2019). Socioeconomic determinants of youth unemployment in Ethiopia, the case of Wolaita Sodo Town, Southern Ethiopia. Journal of Economics and Sustainable Development, 10(23), 46-53.
[45]	Tolera, H. (2025). Risk factors associated with urban youth unemployment in Oromia, Ethiopia: A cross-sectional study of labor market challenges using logistic regression. Research Square. https://doi.org/10.21203/rs.3.rs-7889983/v1
[46]	United Nations Population Fund (UNFPA). (2024). Country programme evaluation of UNFPA Ethiopia: 9th country programme (2020-2025). UNFPA Evaluation Office. https://www.unfpa.org/unfpa-ethiopia-9th-country-programme-evaluation-2020-2025
[47]	Vintu, D. (2025). Unemployment Rate: Concepts and Indicators.
[48]	Wiener, Y., & Schneiderman, M. L. (1974). Use of job information as a criterion in employment decisions of interviewers. Journal of Applied Psychology, 59(6), 699.
[49]	Yamane Taro. (1967). Statistics: An Introductory Analysis, 2nd Ed., New York: Harper and Row.

Cite This Article

Plain Text BibTeX RIS

APA Style

Wonit, M. K. (2026). Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression. Innovation Economics, 1(3), 134-145. https://doi.org/10.11648/j.iecon.20260103.12

Copy | Download

ACS Style

Wonit, M. K. Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression. Innov. Econ. 2026, 1(3), 134-145. doi: 10.11648/j.iecon.20260103.12

Copy | Download

AMA Style

Wonit MK. Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression. Innov Econ. 2026;1(3):134-145. doi: 10.11648/j.iecon.20260103.12

Copy | Download

@article{10.11648/j.iecon.20260103.12,
  author = {Mathiwos Kifle Wonit},
  title = {Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression},
  journal = {Innovation Economics},
  volume = {1},
  number = {3},
  pages = {134-145},
  doi = {10.11648/j.iecon.20260103.12},
  url = {https://doi.org/10.11648/j.iecon.20260103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.iecon.20260103.12},
  abstract = {Youth unemployment remains a major social and economic challenge in urban Ethiopia, where young people face limited job opportunities, skill mismatch, and weak labor-market support systems. This study examines the determinants of urban youth unemployment in Bonga Town, Kaffa Zone, Ethiopia, using cross-sectional data collected from 211 youth respondents and key informant interviews. Descriptive statistics and binary logistic regression were employed to identify the factors influencing employment status. Descriptive statistics show that majority of the youths in the town are male, unmarried, with in the age group 0f 24-26 years, and graduates of college and above. Further, the results from logistic regression show that gender, migration status, average monthly family income, education level, number of skill-improvement training attempts, social networks, skill mismatch, and job information access significantly affect youth employment status. The findings suggest that urban youth unemployment is shaped by both individual characteristics and structural labor-market constraints. Based on these results, the study recommends gender-responsive employment interventions, expanded skills training, improved access to job information, stronger social support mechanisms, and policies that reduce rural-urban migration pressure through balanced local development. These measures are essential for reducing youth unemployment and promoting inclusive urban growth in Bonga Town and similar urban settings in Ethiopia.},
 year = {2026}
}

Copy | Download

TY  - JOUR
T1  - Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression
AU  - Mathiwos Kifle Wonit
Y1  - 2026/09/29
PY  - 2026
N1  - https://doi.org/10.11648/j.iecon.20260103.12
DO  - 10.11648/j.iecon.20260103.12
T2  - Innovation Economics
JF  - Innovation Economics
JO  - Innovation Economics
SP  - 134
EP  - 145
PB  - Science Publishing Group
SN  - 3071-4931
UR  - https://doi.org/10.11648/j.iecon.20260103.12
AB  - Youth unemployment remains a major social and economic challenge in urban Ethiopia, where young people face limited job opportunities, skill mismatch, and weak labor-market support systems. This study examines the determinants of urban youth unemployment in Bonga Town, Kaffa Zone, Ethiopia, using cross-sectional data collected from 211 youth respondents and key informant interviews. Descriptive statistics and binary logistic regression were employed to identify the factors influencing employment status. Descriptive statistics show that majority of the youths in the town are male, unmarried, with in the age group 0f 24-26 years, and graduates of college and above. Further, the results from logistic regression show that gender, migration status, average monthly family income, education level, number of skill-improvement training attempts, social networks, skill mismatch, and job information access significantly affect youth employment status. The findings suggest that urban youth unemployment is shaped by both individual characteristics and structural labor-market constraints. Based on these results, the study recommends gender-responsive employment interventions, expanded skills training, improved access to job information, stronger social support mechanisms, and policies that reduce rural-urban migration pressure through balanced local development. These measures are essential for reducing youth unemployment and promoting inclusive urban growth in Bonga Town and similar urban settings in Ethiopia.
VL  - 1
IS  - 3
ER  -

Copy | Download

Author Information

Mathiwos Kifle Wonit

Department of Economics, Bonga University, Bonga, Ethiopia

Contact Email

http://orcid.org/0009-0003-3241-2106

Download PDF

Submit an Article

Sections

Plain Text BibTeX RIS

APA Style

Wonit, M. K. (2026). Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression. Innovation Economics, 1(3), 134-145. https://doi.org/10.11648/j.iecon.20260103.12

Copy | Download

ACS Style

Wonit, M. K. Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression. Innov. Econ. 2026, 1(3), 134-145. doi: 10.11648/j.iecon.20260103.12

Copy | Download

AMA Style

Wonit MK. Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression. Innov Econ. 2026;1(3):134-145. doi: 10.11648/j.iecon.20260103.12

Copy | Download

@article{10.11648/j.iecon.20260103.12,
  author = {Mathiwos Kifle Wonit},
  title = {Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression},
  journal = {Innovation Economics},
  volume = {1},
  number = {3},
  pages = {134-145},
  doi = {10.11648/j.iecon.20260103.12},
  url = {https://doi.org/10.11648/j.iecon.20260103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.iecon.20260103.12},
  abstract = {Youth unemployment remains a major social and economic challenge in urban Ethiopia, where young people face limited job opportunities, skill mismatch, and weak labor-market support systems. This study examines the determinants of urban youth unemployment in Bonga Town, Kaffa Zone, Ethiopia, using cross-sectional data collected from 211 youth respondents and key informant interviews. Descriptive statistics and binary logistic regression were employed to identify the factors influencing employment status. Descriptive statistics show that majority of the youths in the town are male, unmarried, with in the age group 0f 24-26 years, and graduates of college and above. Further, the results from logistic regression show that gender, migration status, average monthly family income, education level, number of skill-improvement training attempts, social networks, skill mismatch, and job information access significantly affect youth employment status. The findings suggest that urban youth unemployment is shaped by both individual characteristics and structural labor-market constraints. Based on these results, the study recommends gender-responsive employment interventions, expanded skills training, improved access to job information, stronger social support mechanisms, and policies that reduce rural-urban migration pressure through balanced local development. These measures are essential for reducing youth unemployment and promoting inclusive urban growth in Bonga Town and similar urban settings in Ethiopia.},
 year = {2026}
}

Copy | Download

TY  - JOUR
T1  - Determinants of Urban Youth Unemployment in Bonga Town, Southwest Ethiopia: Evidence from Binary Logistic Regression
AU  - Mathiwos Kifle Wonit
Y1  - 2026/09/29
PY  - 2026
N1  - https://doi.org/10.11648/j.iecon.20260103.12
DO  - 10.11648/j.iecon.20260103.12
T2  - Innovation Economics
JF  - Innovation Economics
JO  - Innovation Economics
SP  - 134
EP  - 145
PB  - Science Publishing Group
SN  - 3071-4931
UR  - https://doi.org/10.11648/j.iecon.20260103.12
AB  - Youth unemployment remains a major social and economic challenge in urban Ethiopia, where young people face limited job opportunities, skill mismatch, and weak labor-market support systems. This study examines the determinants of urban youth unemployment in Bonga Town, Kaffa Zone, Ethiopia, using cross-sectional data collected from 211 youth respondents and key informant interviews. Descriptive statistics and binary logistic regression were employed to identify the factors influencing employment status. Descriptive statistics show that majority of the youths in the town are male, unmarried, with in the age group 0f 24-26 years, and graduates of college and above. Further, the results from logistic regression show that gender, migration status, average monthly family income, education level, number of skill-improvement training attempts, social networks, skill mismatch, and job information access significantly affect youth employment status. The findings suggest that urban youth unemployment is shaped by both individual characteristics and structural labor-market constraints. Based on these results, the study recommends gender-responsive employment interventions, expanded skills training, improved access to job information, stronger social support mechanisms, and policies that reduce rural-urban migration pressure through balanced local development. These measures are essential for reducing youth unemployment and promoting inclusive urban growth in Bonga Town and similar urban settings in Ethiopia.
VL  - 1
IS  - 3
ER  -

Copy | Download