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SIGMA CONVERGENCE OF LABOUR PRODUCTIVITY ACROSS INDONESIAN PROVINCES, 2016–2025 Silvia Rosalinda; Meiran Panggabean; Sri Kurniawati
JOURNAL OF SCIENCE AND SOCIAL RESEARCH Vol. 9 No. 5 (2026): October (2026)
Publisher : Smart Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54314/zpgtm925

Abstract

Abstract: Labour productivity in Indonesia remains highly uneven across provinces: output per worker in DKI Jakarta is about sixteen times that of Nusa Tenggara Timur. This study examines whether these disparities narrowed between 2016 and 2025 by testing sigma convergence across 34 provinces. Labour productivity is measured as real Gross Regional Domestic Product at 2010 constant prices per employed person, using data from Statistics Indonesia (BPS) processed by the Ministry of Manpower. Dispersion is measured by the coefficient of variation (CV), and its change is evaluated with a linear trend regression and the Carree–Klomp test, supplemented by robustness checks that exclude outlying provinces. The CV was 0.767 in 2016 and 0.769 in 2025, with no significant trend (p = 0.602) and no significant change in log variance (T₂ = 0.499; p = 0.480); sigma convergence is therefore not found for Indonesia as a whole. A spike to 0.860 in 2023 reflects an exceptional value for Papua. When DKI Jakarta, Papua, and Papua Barat are excluded, the CV of the remaining 31 provinces falls significantly from 0.697 to 0.626 (δ = −0.0076 per year; p < 0.001), although the decline has stalled since 2021. National dispersion is thus sustained by Jakarta’s widening lead and by volatile data for Papua, while the least productive provinces in eastern Indonesia continue to lag. Policy should prioritise productivity-raising investment in lagging provinces and improve the consistency of provincial statistics after administrative splits. Keyword: Coefficient of variation, Labour productivity, Regional disparity, Sigma convergence, Indonesia                                        Abstrak: Produktivitas tenaga kerja di Indonesia masih sangat timpang antarprovinsi: output per pekerja di DKI Jakarta sekitar enam belas kali lipat dibandingkan dengan di Nusa Tenggara Timur. Studi ini mengkaji apakah kesenjangan tersebut menyempit antara tahun 2016 dan 2025 dengan menguji konvergensi sigma di 34 provinsi. Produktivitas tenaga kerja diukur sebagai Produk Domestik Regional Bruto (PDRB) riil atas dasar harga konstan tahun 2010 per orang yang bekerja, menggunakan data dari Badan Pusat Statistik (BPS) yang diolah oleh Kementerian Ketenagakerjaan. Dispersi diukur dengan koefisien variasi (CV), dan perubahannya dievaluasi menggunakan regresi tren linear serta uji Carree–Klomp, yang dilengkapi dengan pemeriksaan ketahanan (robustness check) dengan mengecualikan provinsi-provinsi yang menjadi pencilan (outlier). Nilai CV tercatat sebesar 0,767 pada tahun 2016 dan 0,769 pada tahun 2025, tanpa tren yang signifikan (p = 0,602) dan tanpa perubahan signifikan pada varians log (T₂ = 0,499; p = 0,480); dengan demikian, konvergensi sigma tidak ditemukan untuk Indonesia secara keseluruhan. Lonjakan ke angka 0,860 pada tahun 2023 mencerminkan nilai yang luar biasa untuk Papua. Ketika DKI Jakarta, Papua, dan Papua Barat dikecualikan, nilai CV dari 31 provinsi sisanya turun secara signifikan dari 0,697 menjadi 0,626 (δ = −0,0076 per tahun; p < 0,001), meskipun penurunan tersebut terhenti sejak tahun 2021. Dengan demikian, dispersi nasional tetap bertahan karena keunggulan Jakarta yang kian melebar serta data Papua yang fluktuatif, sementara provinsi-provinsi dengan tingkat produktivitas terendah di wilayah timur Indonesia terus tertinggal. Kebijakan harus memprioritaskan investasi untuk meningkatkan produktivitas di provinsi-provinsi yang tertinggal serta memperbaiki konsistensi statistik provinsi setelah adanya pemekaran wilayah administratif. Kata kunci: Koefisien variasi, Produktivitas tenaga kerja, Kesenjangan regional, Konvergensi sigma, Indonesia
DOES SCHOOLING REDUCE INCOME INEQUALITY? PANEL EVIDENCE FROM REGENCIES AND CITIES IN WEST KALIMANTAN, INDONESIA, 2016–2025 Fenny Fenny; Yarlina Yacoub; Sri Kurniawati
JOURNAL OF SCIENCE AND SOCIAL RESEARCH Vol. 9 No. 5 (2026): October (2026)
Publisher : Smart Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54314/k0kby650

Abstract

Abstract: Human capital theory predicts that wider schooling lowers income inequality, yet empirical evidence for Indonesian regions is contradictory. This study examines the effect of education, measured by mean years of schooling, on income inequality, measured by the Gini ratio, in the 14 regencies and cities of West Kalimantan Province over 2016–2025 (140 observations), using BPS data. The common, fixed, and random effect models are estimated, and the preferred model is selected with the Chow, Hausman, and Lagrange Multiplier tests. Across regencies, schooling and inequality are positively associated (r = 0.70 for regency means), driven mainly by Pontianak City, which has both the highest schooling and the highest inequality; the common and random effect models therefore show a positive and significant coefficient. However, the tests favour the fixed effect model, in which schooling has a negative but insignificant effect on the Gini ratio (β = −0.0065; cluster-robust p = 0.508). The result is robust to year effects, the exclusion of outliers, and lagged schooling. The hypothesis that education reduces inequality is therefore not supported: the cross-regional link reflects persistent regional characteristics rather than the effect of rising schooling within regions. Policy should complement the expansion of schooling with measures that improve its quality and link it to productive local employment, especially in high-inequality areas. Keyword: Education, Gini ratio, Income inequality, Panel data, West Kalimantan.