Impact of Human Capital Development on Inequality in Nigeria

Abstract

This study assessed the impact of the Human capital development on inequality in Nigeria. The main objective of this study was to determine the impact of human capital development on inequality in Nigeria. The research study employed Auto-Regressive Distributed Lag (ARDL) technique. The result of the study revealed that there is long run relationship between human capital development and inequality in Nigeria. There is an interrelationship among human capital development and inequality in Nigeria. It was observed at the end of the study that about 10.96% (inequality) of the short-run inconsistencies are being corrected and incorporated into the long-run equilibrium relationship in each period. Effort of the government should be at increasing
government expenditure on education and health in order to reduce inequality in the short run and long run respectively. Policy that promotes education without the productive capacity of labour would not lead to reduction in inequality, also, policies of reducing income inequality in Nigeria should invariably incorporate productivity growth measures for such policies to be sustainable.