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Human capital investment: an analysis of the return of higher education
DOI:
https://doi.org/10.22437/ppd.v7i1.6965Keywords:
Human capital investment, Return higher education, UnemploymentAbstract
This study is aimed to analyze particular problems related to economic return for West Sumateran workers who graduated higher education by using human capital investment concepts. The dataset is sourced from National Labor Force Survey for West Sumatera 2017 and contains 1798 records of those aging at least 15 years, graduating from academy, university and postgraduate schools and distributed in all main industries. The return to higher education is estimated using Mincerian framework by considering modulatory effects of college major graduated. Other worker characteristics including training and experience are used to measure earning differentials among worker. The result of this study shows that the return to higher education is significantly positive and amplified if workers graduated from certain college majors. It is also found that participating in job training and having working experience prior to current job significantly increase highly educated workers earning in West Sumatera.
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References
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Badan Pusat Statistik. (2017). Keadaan Angkatan Kerja di Provinsi Sumatera Barat 2017. Padang: BPS
Badan Pusat Statistik. (2016). Laporan Perekonomian Provinsi Sumatera Barat 2016. Padang: BPS
Badan Pusat Statistik. (2017). Potret Pendidikan Indonesia Statistik Pendidikan 2017. Jakarta: BPS
Badan Pusat Statistik. (2017). Sumatera Barat Dalam Angka 2017. Padang: BPS
Becker, G.S. (1975). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, 2nd edition. National Bureau of Economic Research. New York: Columbia University Press
Becker, G.S. (1994). Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, 3rd edition. National Bureau of Economic Research. Chicago: The University of Chicago Press.
Blundell, R., Dearden, L., Meghir, C., & Sianesi, B. (1999). Human Capital Investment : The Returns from Education and and the Economy. Fiscal Studies 20(1):1–23.
Clark, A. (2003). Returns to Human Capital Investment in a Transition Economy. International Journal of Manpower, 24(1):11–30.
Danim, S. (2004). Ekonomi Sumber Daya Manusia. Bandung: Pustaka Setia.
Djoko, M.A.S.S., Karyana, Y., Karim, N.A., Mirdad, A.J., Fatah, R.H.A., Kusdiana, D., Pamungkas, P., & Badranaya, D.. (2015). Mobilitas Penduduk dan Bonus Demografi. Bandung: Unpad Press.
Elfindri & Bachtiar, N. (2004). Ekonomi Ketenagakerjaan. Padang: Andalas University Press.
Ehrenberg, R.G & Smith, R.S. (2003). Modern Labor Economics: Theory and Public Policy. Boston: Scott, Foresman and Company
Fahmy, R., Bachtiar, N., & Sari, D.T. (2016). The Effect of Human Capital on Earning of Indonesian Migrant Workers from West Sumatra in Malaysia. International Journal of Economic Research 13(5):2297–2311.
Febrina, R. & Chotib (2019). Macroeconomic Determinants of Internal Migration to West Sumatra. Conference proceedings, Asia Pasific Business and Economics Conference, 341-348
Jhingan, M.L. (2014). Ekonomi Pembangunan dan Perencanaan. Jakarta: RajaGrafindo Persada.
Juwita, R & Lestari, R.B. (2013). Kontribusi Tingkat Pendidikan Terhadap Pendapatan Sektoral Di Kota Palembang. Forum Bisnis dan Kewirausahaan, 2(2), 149–64.
Kaufman, Bruce.E. & Julie L.H. (2003). The Economics of Labor Market. New York: Thomson/South-Western
Kutner, M.H., Nachtsheim, C.J., & Neter, J. (2004). Applied Linear Regression Models. 4th ed. New York: McGraw-Hill Companies, Inc.
Lyonette, C., Hunt, W., & Baldauf, B. (2017). Occupations and Skills of Arts, Humanities, and Social Sciences Graduates and Postgraduates. Warwick Institute for Employment Research.
Mincer, J.A. (1974). The Human Capital Earnings Function. National Bureau of Economic Research.
Pelinescu, E. (2015). The Impact of Human Capital on Economic Growth. Procedia Economics and Finance, 22, 184–90.
Purnastuti, L., Wahyuni, D., & Mustofa. (2015). Analisis Tingkat Pengembalian Investasi Pendidikan di Daerah Istimewa Yogyakarta. Paper Proceeding, Seminar Nasional Universitas Negeri Yogyakarta
Sanisah, S. (2010). Pendidikan Tinggi dan Pengangguran Terbuka. Lentera Pendidikan 13(2):147–59.
Sugiono, M. (2012). Pengembangan Human Capital dan Pendidikan Kosmopolitan. In Hendrawan, S., Indraswari, Yazid, S. (Eds), Pengembangan Human Capital: Perspektif Nasional, Regional dan Global. Yogyakarta: Graha Ilmu
Weisbrod, B.A. (1962). Education and Investment in Human Capital. The Journal of Political Economy LXX(5):106–23.
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Published
2019-08-31
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- 2019-08-31 (1)
- 2019-08-31 (1)
How to Cite
Human capital investment: an analysis of the return of higher education. (2019). Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 7(1), 49 - 62. https://doi.org/10.22437/ppd.v7i1.6965
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