Productivity effects of human capital: an empirical investigation of health and higher education in South Africa

Josue Mbonigaba () and Akinola Gbenga Wilfred ()
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Josue Mbonigaba: School of Accounting, Economics and Accounting, College of Law and Management, University of Kwazulu Natal, South Africa
Akinola Gbenga Wilfred: School of Accounting, Economics and Finance, College of Law and Management Studies, University of KwaZulu-Natal, Westville, Durban, 4000, South Africa

Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 2019, vol. 37, issue 1, 277-301

Abstract: The huge burden of diseases, poor higher educational outcomes in South Africa and their interaction on affecting productivity of human capital requires investigation for a context –specific policy advice. To this effect, the purpose of this paper is to investigate this relationship, alongside other factors, viewing human capital from the perspective of health, higher education enrolment (HEE) and higher education graduates (HEG). The study adopts time series autoregressive distributive lag (ARDL) with data covering the period 1980 - 2015. The study has found that, while GDP grows, employment rates and HEE have a positive impact on productivity in South Africa; capital stock and life expectancy exhibited an inverse relationship with productivity. These findings support the hypothesis that widespread antiretroviral therapy and resulting survival, without corresponding school sector focus on needed skills, relate negatively to productivity. The findings further support that enrolments affect positively productivity because they comprise individuals who are partly skilled in programs needed by the economy. Finally, they support the hypothesis that graduate outputs relate negatively to productivity because of mismatch of graduation skills and the economy’s need. As a policy suggestion, combined effort at school and health sector is needed in South Africa for increased productivity.

Keywords: productivity; human capital; higher education enrolment; higher education graduates; ARDL; South Africa (search for similar items in EconPapers)
JEL-codes: I1 I15 I21 I23 J24 O4 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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