Implications of Human Capital Formation on Output and Employment: Evidence from Nigeria

Many studies have documented that human capital formation is important to boost output both empirically and theoretically. However, on the implications of employment are still scanty, especially for developing countries. Against this background, study investigates shock long-run government financing education health in Nigeria using a vector error correction model (VECM). The results show forecasting shocks from expenditure affect more than along 10-horizon period. Evidence showed index statistically significant, while not significant. Government has positive relationship with output. For model, significant; investment significant employment. negative employment, exists between result implies indicators terms quantity quality do contribute positively significantly growth Nigeria. recommends need encourage self-reliance through entrepreneurship training bolster opportunities long run.