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

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