Understanding Determinants of Demand For Higher Education: Macroeconomic Evidence From Nigeria
Observed data in Nigeria, like many African countries, have shown that despite high level of youth unemployment or underemployment, and poverty level, there has been an increasing demand for higher education in the last two decades. The current study examines core determinants of this growing higher education demand and discusses their effects. Using annual time series data and error correction techniques of analysis, results show that unemployment and inflation rates have negative impacts on the demand for higher education whereas population growth, lending rate, government expenditure on education as well as gross domestic product per person employed contribute positively to the demand for higher education. Higher education policy therefore deserves a distinct role in development policy in Nigeria. By implication, developing economies with large human population growth may treat education goal in a manner similar to economic growth pursuit.