DOES HUMAN CAPITAL INVESTMENT MATTER FOR GROWTH? EVIDENCE FROM INDONESIA DURING THE FISCAL DECENTRALIZATION ERA

Losina PURNASTUTI

Faculty of Economics
Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia
losina_purnastuti@uny.ac.id
(Corresponding author)

Bambang SUPRAYITNO

Faculty of Economics
Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia
bambang_s@uny.ac.id

SUGIHARSONO

Faculty of Economics
Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia
sugiharsono@uny.ac.id

Abstract

The purpose of this study is to investigate the role of regional government expenditure, workers’ education level, and government expenditure for health and education sector in economic growth by using secondary data published by National Bureau of Statistics Indonesia. Panel data estimation approach was adopted to analyze the data. The result of the study shows that education contributes significantly to the improvement of labor productivity. Other findings indicate that the population has positive impacts on various aspects of human development and labor productivity while the total area owned by the local goverment has no effect on both of the two aspects aforementioned. It implies that human resource is an essential component for economic growth and for human development itself.

Keywords: Human Capital Investment, Government Expenditure, Fiscal Decentralization.

JEL classification: H51, H52, H72, H75
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PLANNING SETTLEMENTS IN THE GREEK ISLANDS

Despina P. DIMELLI

School of Architecture, Technical University of Crete, Chania, Greece
dimelli@arch.tuc.gr

Abstract
The reason for the current paper was the concern about the way spatial planning confronts the settlements in Greece. As spatial policies mainly focus in the urban centers and the problems that these present, the question that was placed was how planning of all spatial levels faces the settlements, which assemble an important percentage of population and also face problems as abandonment, accessibility difficulties, and many others. The current paper attempts initially a recording of the spatial, demographic and productive characteristics of the Islander Greek settlements. In the second phase it examines the tools for the Greek islander settlements Regional and Urban Planning with the use of case studies, in order to evaluate planning’s ability to solve the problems these areas face. Through the research it is concluded the need for the creation of a “Settlements observatory” that will record all natural and anthropogenic characteristics which can lead to the formulation of specialized policies, adjusted on the settlements dynamics and the trends of their future development. The paper concludes that a specialized approach based on the use of specialized indicators is necessary; in order to plan areal units that require specified policies.
Keywords: islander settlements, spatial planning, Greek settlements
JEL classification:
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LABOR ABSORPTION UNDER MINIMUM WAGE POLICY IN INDONESIA

Nur FERIYANTO

Department of Economics, Universitas Islam Indonesia
Condong Catur, Depok, Sleman, Yogyakarta, Indonesia, 55283, Phone number: +62811282632
nurferiyanto@yahoo.com

Jaka SRIYANA

Department of Economics, Universitas Islam Indonesia.
Condong Catur, Depok, Sleman, Yogyakarta, Indonesia, 55283, Phone number: +628328034715
jakasriyana@yahoo.com
(Corresponding author)

Abstract

This study analyzes the impact minimum wage policy and some economic factors on labor absorption in Indonesia. For this purpose, this research used provincial panel data for the period of 2006 to 2013. The study reveals that minimum wage policy across provinces has created unemployment trap in this period. It can be inferred that minimum wage policy failed to support the local economy to better and more stable society welfare. This research also found an unexpected result regarding to the role of economic growth to labor absorption. Economic growth across provinces has not contributed yet to the increasing employment rate in the local economy. Moreover, this finding reveals that provincial labor absorption was also affected by geographical factors. The provinces which are located at the west Indonesia tend to have high empolyment rate. This phenomenon indicates the existence of unbalanced development in the country.

Keywords: wage, employment, policy, investment, economic growth

JEL classification: C21, J23, J30, J31, J38

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