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All Journal Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
Aisya Amalia Rachmadani
Department of Development Economics, Faculty of Economics and Business, Universitas Sebelas Maret
Economics, Econometrics & Finance

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The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach Aisya Amalia Rachmadani; Tri Mulyaningsih; Basem Ertimi
Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan Vol 24, No 2 (2023): JEP 2023
Publisher : Muhammadiyah University Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/jep.v24i2.23123

Abstract

Indonesia has an abundant labor supply, so examining the determinants of earnings that reflect labor productivity is essential. This study is keen to estimate the effect of human capital, demographic factors, and regional (Regency/City) effects on workers' earnings in the Province of Central Java in 2022. The data is collected from the National Labor Force Survey (Sakernas). The multilevel mixed-effect regression is employed to assess the effect of individual characteristics and district-level variation on earnings. The study found that human capital, demographic factors, and regional (Regency/City) effects significantly affect earnings. Education and training are essential to improve workers’ skills, leading to higher performance. Further, regional characteristics have contributed to explaining earnings variation across workers in Central Java.
Co-Authors Basem Ertimi Tri Mulyaningsih