The Impact of Public Spending on Education on Unemployment: Empirical Evidence from Lithuania

Tomas Kesarevas; Akvilė Aleksandravičienė

doi:10.2478/mosr-2025-0013

Abstract

This study aims to assess the impact of public spending on education on unemployment. The study also considers other factors affecting unemployment, such as gross domestic product (GDP), exports, foreign direct investment, and inflation. Hypotheses are proposed for each factor affecting unemployment. This empirical study analyses Lithuanian data from 2000 to 2023 using the ordinary least squares method. The results showed that public spending on education and foreign direct investment significantly reduces unemployment. The results also revealed that net exports have a very insignificant effect on increasing unemployment, and inflation does not have a statistically significant effect on unemployment. GDP was removed from the model due to issues encountered when testing the regression model’s assumptions.

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The Impact of Public Spending on Education on Unemployment: Empirical Evidence from Lithuania

Abstract

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