The Effect of Educational, Health, Infrastructure Expenses on the Workforce Employment and Poverty
Abstract: The research aims to
analyze the influence and impact of educational, health, and infrastructure
expenses on the employment of workforce (from agricultural, industrial, services
sectors) and poverty in Central Java. The model was built by using an
econometric approach in the form of a system of simultaneous equation model
consisting of six blocks (human capital, inputs, outputs, revenues,
expenditures and social welfare) with 33 equations (24 structural equations and
9 identity equation). The method of estimation model uses Two Stage Least
Squares (2SLS). The simulation results show that the policies of increasing
expenses on education, health, and infrastructure with the same value result in
the increased employment of workforce in all sectors and reduced poverty. Among these policies, the increased health
expenses have the most significant influence on the increase of workforce employment
in services sector and reduce poverty. While the policy of increasing expenses
on infrastructure has the greatest effect on the increase of workforce
employment in industrial and agricultural sectors.
Author: Niken Sulistyowati
Journal Code: jpadministrasinegaragg130057