Economics Development Analysis Journal

Labor Supply Analysis: Case Study of Married Women Workers

Uswatun Khasanah — 2024-07-08

Women in the labor market contribute to labor as part of the production factors in economic activities. Women's participation in the labor market cannot be separated from their role and status in the family. Personal characteristics, socio-economic conditions, and demographics influence women's decisions to work. The research aim is to analyze the supply of married women workers in Indonesia. The data used is secondary data originating from Sakernas February 2022. The method used is logit regression. The variables used in this research are the supply of married women workers, location, household members, women's age, women's education, employment status, wages, working hours, and training. The research results show that the variables of women's age, education, working hours, and training positively and significantly influence the supply of married women workers. The variables location, number of household members, employment status, and wages negatively and significantly influence the supply of married women workers. In general, the tendency of married women to work is higher among married women who live in rural areas, have few household members, are older, have a higher level of education, formal employment status, low wages, working hours are high, and have training experience.

Optimizing The Program Kartu Prakerja for Young Workers

Rizki Tri Anggara — 2024-07-11

The Program Kartu Prakerja is a vital initiative in Indonesia to enhance job opportunities and quality, particularly for vulnerable individuals such as young workers. Many studies focus on unemployed individuals as research subjects. However, the real challenge is faced by the unemployed and those who are already employed. This paper investigates the program's effectiveness in enhancing employment opportunities for young workers by evaluating its impact on the probability of job retention and earnings. Using the August 2021 National Labour Force Survey (Sakernas) data, this study employs the Propensity Score Matching (PSM) method to compare the treatment group receiving the program with the control group not receiving the intervention. The findings show that the program had a significant negative impact on the probability of job retention for young participants, implying that some participants left their previous jobs in search of new ones. Another finding indicates that the program positively impacts earnings, although this impact was not statistically significant. These findings underscore the program's role as a strategic response to improving the labor market's functioning, which needs further optimization.

Impact of Program Keluarga Harapan on Child Labor During Covid-19

Cindy Candrawati — 2024-07-16

This research examines the impact of the Program Keluarga Harapan (PKH), a conditional cash transfer program, on child labor in Indonesia. The study focuses on the periods before and during the COVID-19 pandemic, using data from the National Socioeconomic Survey (Susenas) from March 2019 to 2021. The study specifically looks at children aged 10-17 from economically vulnerable families living in urban and rural areas. The research employs the Propensity Score Matching (PSM) technique to determine the impact of PKH on child labor participation as a response to economic shocks and school closures during the pandemic. The findings indicate that while PKH provides financial assistance to families, it has not significantly reduced child labor during the pandemic or before. Despite an increase in the amount of aid and changes to monthly distributions during the pandemic, the proportion of working children has increased, especially in urban areas, where child labour rates have significantly risen compared to rural areas. This research emphasizes the need for comprehensive policy strategies to reduce reliance on child labor as a coping strategy during crises.

The Impact of U.S. Quantitative Research Policy on Asian Macroeconomics

Anna Yulianita — 2024-07-19

U.S. Quantitative Research policies significantly impact economic variables in Asia-Pacific, including inflation, interest rates, unemployment, and exchange rate depreciation, but the causal relationship remains unclear. Understanding these policies' impact is important for economic stability and growth amid global uncertainty. Using data from the World Bank and IMF, Granger's causality analysis was used to uncover the relationships between these variables. The findings show that U.S. inflation is unrelated to unemployment in the Asia-Pacific, but The Fed's interest rates correlate with inflation and unemployment in the region. Rising US interest rates could have a negative impact on unemployment, especially for countries that depend on foreign capital or have strong economic ties with the U.S. Policy recommendations include enhancing regional cooperation, implementing efficient monetary policy, diversifying the economy, investing in workforce education and training, and evaluating U.S. policies to maintain economic stability in the Asia-Pacific.

Does Corruption Hinder Economic Growth? A Simultaneous Analysis

Indah Susilowati — 2024-07-26

Corruption has a causal relationship with economic growth that economists have long studied. This study aims to determine the causal relationship between corruption and economic growth, the effects of human development and good governance on corruption, and the effect of investment, labor force, and the use of technology on economic growth. The data used is panel data consisting of 43 Asian countries in 2012-2022, which were analyzed using Two-Stage Least Squares (2SLS). This study found that corruption and economic growth have a positive causal relationship, thus supporting the theory of Sand the Wheel that corruption hinders economic growth in Asian countries except Central Asia, and the determinants of corruption and economic growth have varying effects in the Asian region. This study provides information for stakeholders to develop policies that encourage economic growth by prioritizing human development, creating good governance, and increasing physical capital, human capital, and technology adoption.

Stunting In Java Island: Spatial and Risk Factor Analysis

Anisya Nur Widya — 2024-08-07

The prevalence of stunting is above 20%, indicating a significant health problem in Indonesia. This research aims to identify the predictors influencing stunting on the island of Java and to map its distribution using Geo Maps Orange data mining. Data analysis employs multiple linear regression methods with cross-sectional data. Secondary data was obtained from the Badan Pusat Statistik and the Nutrition Status Survey in 2022. The data was processed using Eviews 10 and Geo Maps Orange data mining. The results show that stunting is influenced by various variables. The Human Development Index (HDI) and proper sanitation have a significant negative influence on stunting. Based on mapping, Central Java Province has the highest incidence of stunting, while DKI Jakarta has the lowest incidence on the island of Java. Stakeholders can use this information to promote better parenting patterns, health hygiene practices, affection or compassion practices, and the implementation of clean water sanitation programs to create quality environmental conditions and mitigate the threat of infectious diseases, especially stunting

Are Business Savings a Mediator for Culinary Tourism Development?

Efriyani Sumastuti — 2024-07-29

Culinary tourism significantly boosts local economies and enriches tourist experiences. This study investigates whether business savings mediate the relationship between financial literacy, profit, and culinary tourism development in Klaten, Central Java, Indonesia. Employing a quantitative approach with a case study design, the research involved 100 culinary business owners as respondents. Data were collected through questionnaires and interviews and analyzed using path analysis with SmartPLS 3.0. The findings reveal that financial literacy and profit influence business savings and culinary tourism development. Furthermore, business savings mediate the relationship between financial literacy, profit, and culinary tourism development. Specifically, higher financial literacy and profits lead to increased business savings, which then facilitate investment in infrastructure, innovation, marketing, and employee training, thereby enhancing the overall development of culinary tourism. These results provide a comprehensive understanding of the financial dynamics driving culinary tourism growth in Klaten. The study's implications include recommendations for policymakers, business owners, and financial institutions to design effective strategies and policies that support the sustainable growth of the culinary tourism sector.

Role of Roads and Irrigation on Food Security in Indonesia

Erlisa Oktiani — 2024-08-07

Food security is a critical aspect of assessing people's well-being. One key factor influencing food security is infrastructure. In Indonesia, food security varies significantly, but it has remained stagnant at lower levels in the eastern regions for several years. According to regulations governing financial relations between the central and regional levels, spending on public service infrastructure should constitute 40% of the regional budget. This study examined the relationship between road infrastructure and food security. However, the study also considers irrigation development and other variables for a more comprehensive analysis. By analyzing data from 508 regencies and cities in Indonesia from 2018 to 2021, this research explores the impact of road and irrigation infrastructure on food security at the local level. The study, utilizing the Generalized Method of Moments (GMM), concludes that consistent road construction can improve food security in regencies and cities across Indonesia. Gross Regional Domestic Product (GRDP), access to sanitation, and water availability also play crucial roles in determining national food security.

SEM-PLS: Predicting Community Welfare and Unemployment Using Income Inequality

Ahmad Ahmad — 2024-07-31

This study investigates the complex theoretical relationship between income inequality, open unemployment, and social welfare using SmartPLS 3.0 structural equation modeling tools. The data consists of a panel dataset, which includes cross-sectional data from the provinces of Sulawesi Island (Gorontalo, South Sulawesi, North Sulawesi, Central Sulawesi, Southeast Sulawesi, and West Sulawesi) and time series data spanning from 2010 to 2022. The data are sourced from secondary data provided by the Indonesian Central Statistics Agency. The results of the outer model test indicate that only the manifest variables—the Gini ratio and the unemployment rate in West Sulawesi—are not valid and reliable. The inner model test results demonstrate that income inequality and open unemployment negatively and significantly impact community welfare, while income inequality positively and significantly affects the unemployment rate. Based on these findings, it is recommended that policymakers and practitioners design and implement policies aimed at reducing income inequality and addressing unemployment issues. Such efforts are expected to impact the overall welfare of communities across Sulawesi Province positively

Does Local Government Expenditure Lead to Human Development in Indonesia?

Benny Imantria — 2024-07-27

Human development has become a national development priority in the vision of Indonesia Emas 2045, but the HDI score shows district-level inequality in increasing local government expenditure. This study aims to identify the effect of local government expenditure realization on HDI. The data used is 508 districts of Indonesia in 2017-2022, and it was analyzed using a panel data regression fixed-effect model. The novelty of this study lies in the local government at the district level and local government expenditure according to function and type classification. The study shows that education expenditure, health expenditure, economic expenditure, employee expenditure, and goods and services expenditure have a significant positive effect on HDI, but capital expenditure has a significant negative effect on HDI. Local governments are expected to understand the dominant role of health expenditure in increasing HDI, increase the budget allocation for economic and capital expenditure, reduce the budget allocation for employee and goods and services, and measure the performance of local government expenditure.