The Journal of Indonesia Sustainable Development Planning (JISDeP)
Vol 2 No 1 (2021): April 2021

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.)



Article Info

Publish Date
28 Apr 2021

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.

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Journal Info

Abbrev

jisdep

Publisher

Subject

Economics, Econometrics & Finance Energy Environmental Science Law, Crime, Criminology & Criminal Justice Social Sciences

Description

The journal aimed at studying the issues of sustainable development (in terms of politics, economics, social, culture, environment, peace and justice, energy, and other strategic issues) from around the world to later be used as policy material in sustainable development planning in Indonesia, ...