When Will Human Capital in Indonesia be Equal? A Convergence Analysis

Nayaka Artha Wicesa; Axellina Muara Setyanti

doi:10.46456/jisdep.v2i1.94

When Will Human Capital in Indonesia be Equal? A Convergence Analysis

Nayaka Artha Wicesa Department of Economics, Faculty of Economics and Business University of Brawijaya, Malang, Indonesia.
Axellina Muara Setyanti Department of Economics, Faculty of Economics and Business University of Brawijaya, Malang, Indonesia.

https://doi.org/10.46456/jisdep.v2i1.94

Abstract

One of the problems faced by developing countries is income inequality, which is caused by weak and uneven human capital between regions. This research aims to determine the convergence of human capital in absolute and conditional with the explanatory variable of government expenditure in education. The method used is panel data regression with generalized least square and robust standard error. The results showed that provinces in Indonesia experienced human capital convergence in absolute, where inequality of human capital among provinces tended to decline over time and towards equity. The results also showed that provinces in Indonesia experienced human capital convergence in conditional, where government expenditure in education was able to accelerate the convergence process, but not significantly. This study also found that the time needed to equalize human capital in Indonesia is 164 years.

Views: 4576

Downloads

Download data is not yet available.

Recommendation Article

Recommendation Article

Keywords:

human capital goverment expenditures in education convergence analysis

Galleys

Download PDF

Total Downloads: 333

Published

2021-04-28

How to Cite

WicesaN. A., & Muara SetyantiA. (2021). When Will Human Capital in Indonesia be Equal? A Convergence Analysis. The Journal of Indonesia Sustainable Development Planning, 2(1), 45-57. https://doi.org/10.46456/jisdep.v2i1.94

Issue

Vol 2 No 1 (2021): April 2021

Section

Research Paper

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

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution ShareAlike License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories, pre-print sites, or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater dissemination of published work.