The Dynamic Impacts of China’s Education Expansion on Employment Growth——Based on the VAR Model
LU Ping1,2
1.Institute for the Development of Central China, Wuhan University, Wuhan 430072, China; 2.The Department of the Moral Education,Zhongzhou University ,Zhengzhou 450004, China
Abstract Traditional economic theory believe that education play an important role on the economy and employment growth. The contribution of education to economic development is realized through the increased investment on the human capital, the greater ratio of education on human capital, the greater contribution on economic development, and thus the corresponding employment growth. This paper analyzes the interaction between China’s education expansions and employment rate by Ganger causality test and VAR model.The study reveals that education expense is the Ganger reason for employment growth rate; education expense has not only a significant positive temporary effect but also a significant lag effect on employment growth rate. But we cannot find the evidence for that employment will lead to the change of education expense. Finally, this study suggests that the government should increase education expense initiatively, improving the use efficiency of public education resources, promoting China’s human capital accumulation, so as to enhance the effective increase of the employment rate and the employment structure optimization.
2013, Vol. 1 
