Impact Of Public Spending On Employment Rate In Algeria During The Period 1991-2022

Abstract

This study aims to investigate the relationship between public spending and employment in Algeria during the period 1991-2022. Using the Autoregressive Distributed Lag (ARDL) method, the study estimates the dynamic relationship between public spending, population growth, economic growth, and employment in the short and long run. Our empirical results found a significant negative relationship between population growth and employment in the short run and a significant positive relationship between population growth and employment in the long run. The study found also no significant effect of either public spending or economic growth on employment rates. This result suggests that public spending is not effective in employment policy.