Relationship between Human Capital and Labour Productivity

Abstract

This study uses the Keywords: Generalized Method Moments (GMM) technique to examine the Employee Education, effect of human capital on labor productivity. The coefficient of Human Capital, employee education indicates that there is positive correlation Labour between employee education and labour productivity. Hence, in Productivity Pakistan education is more powerful element to increase labor *Corresponding productivity. The coefficient of employee training tells us that Author one percent increase in investment on training will result in 0.10 percent increase in labor productivity. The variable employee age sajidali10@hotmail.c has negative correlation with labor productivity. However, this om relationship is not statistically significant. The variable Financial Participation and labour productivity has insignificant relationship. The finding further indicates that variable working hour and labour productivity has positive association. The coefficient of Employee Wage is 0.007454, which tells us that wages has positive and significant effect on labor productivity.