Socio-Economic Indicators and its Implication on Unemployment: Empirical Study in Six Provinces in Indonesia

Debby Nindya Istiandari ,Lilis Siti Badriah ,Kamio

doi:10.7176/jesd/11-4-07

Abstract

This study was aimed to analyze the influence of the primary sector of GRDP, secondary sector of GRDP, tertiary sector of GRDP, basic education graduates, middle education graduates, higher education graduates, male morbidity rate, female morbidity rate, and population growth on the unemployment rate in six provinces in Indonesia including Special Capital Region of Jakarta, West Java, Central Java, Special Region of Yogyakarta, East Java, and Banten Provinces. The data type of this study was secondary data for the period of 2009-2018 and cross data of the six provinces, whereas the data analysis technique used was panel data regression analysis. From the result, it was found that the basic education graduates and population growth on the significance level of 1 percent have a significant influence, while the secondary sector of GRDP, tertiary sector of GRDP, higher education, and the male morbidity rate were found to have a significant influence on the unemployment rate with the significant rate of 5 percent. Keywords : unemployment, economic sectors, human capital, population DOI: 10.7176/JESD/11-4-07 Publication date: February 29 th 2020

Highlights

Indonesia is an archipelago state with 34 provinces
In accordance with the findings, this research concludes that the graduation of basic education and population growth has a significant effect on the unemployment rate within the significance level of 1 percent
In the significance level of 5 percent, it discovers that Gross Regional Domestic Product (GRDP) of the secondary sector, GRDP of the tertiary sector, the graduation of high education, and the number of morbid males have a significant effect

Summary

Introduction

Indonesia is an archipelago state with 34 provinces. Amongst the island and big islands in Indonesia, Java Island comprises of six provinces is an island with the highest population density compared to other islands as can be seen in the following table. Along with the high population, Java Island surely has various problems hard to avoid. From the various problems in Java Island, unemployment is a problem so far being continuously highlighted due to the increasing percentage and it can be said that it is inarguably high as can be seen in the following picture.

Objectives

Methods

Findings

Discussion

Conclusion