Health Shock and Labour Market Outcomes in Nigeria

Abstract

This study investigated the effect of health shock on labour market outcomes in Nigeria between 1980 and 2021. The data used were total mortality rate, employment rate, per capita GDP, primary school enrollment and urbanization. The Autoregressive Distributive Lagged (ARDL) estimation techniques was used. The findings revealed that a long run relationship exists among the variable from the outcome of the Bound test. health shock measured by mortality impacted negatively on labour market outcomes measured by employment rate both in the short run and in the long run. The result was significant in the long run. Also, urbanization, per capita GDP and primary school enrollment increases employment in Nigeria. The study recommended that efforts to improve the employment rate should take into account the effect of mortality rate on employment, and vice versa. This could involve policies to improve healthcare, reduce mortality rates, and increase access to education and employment opportunities. Additionally, policies that promote economic growth and urbanization could also have a positive effect on employment rates.

Keywords: Health Shock, Labour Market Outcomes, Mortality, Employment Rate, Urbanization.