TESTING C – K MODEL OF EMPLOYMENT IN THE PERSPECTIVE OF SOCIO-ECONOMIC FRAMEWORK

The main purpose of this article is to explore the impact of social indicators like health and education on employment in Pakistan considering the notions of classicals and Keynes. The research is based on the time series data covering the period 1973- 2018. The specified model is estimated using ARDL bound testing approach. It is observed that the core variables are directly linked with employment. Theoretical variables like wages, income and rate of interest support the Classical and Keynesian theories of employment determination. The long run and short run findings reveal similar effects. Based on the results, it is suggested that there might be a handsome allocation of funds for education and sufficient resources might be shifted to health sector for providing employment opportunities in Pakistan especially technical education.