Page 104 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.81, # 2, 2024, pp. 104-116

INFLUENCE OF HUMAN CAPITAL ON EMPLOYMENT IN

CHINA STANDARD ANALYTICAL STUDY

Fettouche Fatma

Abdelhafid Boussouf University center, Mila, Algeria
[email protected]
https://orcid.org/0000-0003-3998-6228

https://doi.org/10.30546/jestp.2024.81.02.05

Received: September 20; accepted November 08, 2024; published online December 25, 2024

ABSTRACT
The purpose of this study is to check the influence of human capital on China's
employment rate by analyzing the development and measurement of study variables
during the study period utilizing the ARDL model. The study revealed that human
capital significantly influences labor market outcomes regarding employment and
income levels, indicating that human capital enhances employment rates, as evidenced
by its positive short-term impact on employment in China.

Keywords: Human Capital, ARDL, Long-term and Short-term Effects.
JEL Classification:E2, H5. O16

INTRODUCTION
Human capital is a critical element of production that nations depend on to expedite
growth across all sectors due to its potential influence on the productive process and
its contribution to value-added creation in the country's gross domestic product. This
impact include effects on production, employment, income, education, and health,
which subsequently influence economic development and individual well-being.
Since the eighteenth century, economists and intellectuals have shown heightened
interest in the human capital component, with the theories and ideas of specialists in
this field becoming central to decision makers and politicians as a primary factor in
enhancing and advancing the productive process. The more the efficiency and
qualifications of the workforce, the more it enhances employment rates and
effectiveness in addressing economic difficulties and labor market demands to foster
growth. China is confronting the challenges of enhancing human capital in accordance
with labor market demands through various strategies and programs designed to
optimize the human element as dictated by the labor market, including increased
government expenditure to support training and vocational rehabilitation initiatives
for societal members.

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