THE EFFECT OF HEALTH AND EDUCATION EXPENDITURES ON THE EMPLOYMENT: EMPIRICAL EVIDENCE FROM TÜRKİYE

Abstract

This research delves into the influence of human capital investments on employment in Türkiye between 2000 and 2021. We first employ the Autoregressive Distributed Lag (ARDL) method to assess both the short and long-term impacts of human capital investments on employment. Then, the Pairwise Granger Causality test is applied to explore the causality among the variables. According to the long run coefficient, a 1% rise in government education and health expenditures and GDP growth rate leads to a 1.27%, 1.17% and 0.76% increase in employment in Türkiye, respectively. Additionally, The Pairwise Granger Causality test results show that government education expenditure on human capital influences employment in Türkiye and vice versa as well as a causal relation between the employment rate and inflation rate. In conclusion, Türkiye should increase its expenditure on health and education as these investments serve as a vital role in enhancing the level of human capital and welfare of the population.

Keywords

• Human Capital
• Employment
• Health Expenditure
• Education Expenditure

THE EFFECT OF HEALTH AND EDUCATION EXPENDITURES ON THE EMPLOYMENT: EMPIRICAL EVIDENCE FROM TÜRKİYE

Abstract

Bu çalışma, 2000-2021 yılları arasında Türkiye’deki beşeri sermaye yatırımlarının istihdama olan etkisini araştırmaktadır. İlk olarak, beşeri sermaye yatırımlarının istihdam üzerindeki kısa ve uzun vadeli etkilerini tahmin etmek için ARDL modeli kullanılmaktadır. Ardından, Pairwise Granger nedensellik testini kullanarak değişkenler arasındaki nedensellik incelenmektedir. Uzun dönem katsayılarına göre, Türkiye'de kamu eğitim ve sağlık harcamaları ve GSYİH büyüme hızındaki %1'lik artışın sırasıyla istihdamda %1.27, %1.17 ve %0.76'lık artışa yol açtığı görülmektedir. Ayrıca, Pairwise Granger nedensellik testi sonuçlarına göre çift yönlü olarak kamu eğitim harcamalarının Türkiye'deki istihdamı etkilediği ve ayrıca istihdam oranı ile enflasyon orası arasında nedensel bir ilişki olduğunu göstermektedir. Sonuç olarak, Türkiye, beşeri sermaye düzeyini ve nüfusun refahını artırmada önemli bir rol oynadığı için sağlık ve eğitim harcamalarını artırmalıdır.

Keywords

• Beşeri Sermaye
• İstihdam
• Sağlık Harcamaları
• Eğitim Harcamaları

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