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.

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Keywords:

human capital goverment expenditures in education convergence analysis

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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

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