Analysis of Human Capital on Economic Growth and Labor Demand in Indonesia

Authors

  • Is Sugiyanti  Department of Economics, IPB University, Bogor, Indonesia
  • Bambang Juanda  Department of Economics, IPB University, Bogor, Indonesia
  • Tony Irawan  Department of Economics, IPB University, Bogor, Indonesia

DOI:

https://doi.org//10.32628/IJSRSET207120

Keywords:

Demand Labor, Economic Growth, Education, Human Capital, Simultaneous Equation

Abstract

The effect of human capital on economic growth has been an issue since the existence of endogenous growth theories that include human capital as a factor of production. Likewise with the influence of human capital on labor demand. Different results from the theory are sometimes found, especially in the case of developing countries. Research that using workers' variables by calculating the underemployment rate is still rarely conducted in Indonesia. This study uses labor data in Indonesia at the provincial level from 1996 to 2018. The labor variable used takes into account open unemployment and underemployment rates. Educational variables are used to proxy human capital. Using the simultaneous equation model, we find a significant relationship between human capital factors on economic growth and labor demand. The higher the education level of the workforce, the greater the influence donated on economic growth.

References

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2020-02-25

Issue

Volume 7, Issue 1, January-February-2020

Section

Research Articles

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

[1]
Is Sugiyanti, Bambang Juanda, Tony Irawan, " Analysis of Human Capital on Economic Growth and Labor Demand in Indonesia, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 7, Issue 1, pp.124-130, January-February-2020. Available at doi : https://doi.org/10.32628/IJSRSET207120