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The relationship between education and employment: A theoretical analysis and empirical test

Author

Listed:
  • CHEN Zhongchang

    (College of Trade and Public Administration, Chongqing University, Chongqing 400030, China)

  • WU Yongqiu

    (College of Trade and Public Administration, Chongqing University, Chongqing 400030, China)

Abstract

In this paper, we divide the process of educational development into two aspects: the change in educational structure and the expansion of educational scale. Based on this hypothesis, we analyze the relationships between each of the two aspects and employment respectively. In this paper, the factors and the transmission mechanism of the influence that education has on employment are also explained. Then, the theoretical models of the relationship between education and employment are built up. Finally, we use the empirical data collected in China to test the theoretical models and give explanations to the status quo of the unemployment structure within various educational levels. It suggests that: the development of education in China at present is beneficial to the increase in the employment rate, the increase in the proportion of the laborers with junior school education has negative effects on employment, and the development of higher education creates positive effects on the employment, but no evidence shows any significant correlation between the proportion of the laborers with senior high school education and the unemployment rate.

Suggested Citation

  • CHEN Zhongchang & WU Yongqiu, 2007. "The relationship between education and employment: A theoretical analysis and empirical test," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 2(2), pages 187-211, June.
    • Handle: RePEc:fec:journl:v:2:y:2007:i:2:p:187-211
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-007-0010-4
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    Cited by:

    1. Bashir, Saima & Herath, Janaranjana & Gebremedhin, Tesfa G., 2012. "An Empirical Analysis of Higher Education and Economic Growth in West Virginia," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124829, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    educational structure; educational scale; supply and demand structure; unemployment rate;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I29 - Health, Education, and Welfare - - Education - - - Other

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