Education enrolment rate vs employment rate: Implications for sustainable human capital development in Nigeria

Abstract

PurposeThe study examines the dynamic interrelationships among the school enrolment rates and the rate of employment (via unemployment rates) in Nigeria. Design/methodology/approachThe study employed Autoregressive estimates and an unrestricted VAR approach to analyze these relationships. FindingsThe study lends credence to the new-growth theory (i.e. endogenous models) that more investments in human capital, through education especially at higher levels, will allow human capital to evolve dynamically to increase long-run growth positively in Nigeria. This tendency engenders multiplier effects in stimulating sustainable human capital development given that education-driven growth facilitates employment in the short-run. However, to sufficiently sustain human capital development to generate employment in the long-run, it appears there is need to combine education with other cooperant factors such as social safety nets, good governance, private sector development and efficient utilization of human and physical resources. Originality/valueThe growth literature has been definitive on the role of human capital in achieving long-run economic growth. Therefore, investments in education have been identified as a vital channel for building human capital and achieving long run development objectives. Thus, in the nascent quest for sustainable development, this study takes the new growth theory a step higher by examining the modulating effects of education-driven growth (i.e. via school enrolments rates) in setting the pace for employment patterns in Nigeria.