Education, work participation and income in Indonesia

Abstract

This study examines the relationship of education in encouraging work participation which in turn can increase the aggregate income of the people as indicated by an increase in GDP per capita in Indonesia. To achieve this goal, the Quantitative Threshold Autoregressive method is used to predict the behaviour of the data so that the behaviour of the relationship between data can be seen and can be seen the growth of community income and future work participation when investing in education is increased or done. We found that education is an important pillar in economic development. Education based on the estimation results requires a process in improving the quality of human resources and requires time in the process of increasing income. However, education can boost income and work participation in an aggregate manner so that the population can be more prosperous.