PENGARUH MODAL MANUSIA TERHADAP PRODUKTIVITAS DI INDONESIA

Abstract

Productivity is one of the instrument to increase economic growth. Productivity can be increased by increasing human capital and physical capital. Human capital is needed to support the ability to produce goods and services. Human capital can also increase productivity through the improvement of education level. If individual’s level of education is high, productivity will increase. If individual’s level of health is high, the higher the opportunity of employment, additional time of work, then it can increase productivity. In this study, education is measured by mean years of schooling and health is measured by life expectancy rate. This study applied panel data regression method with fixed effect model (FEM) to measure the impact of human capital to productivity. The object of this study is 472 districts/cities in Indonesia 2004 – 2012. This research used panel data sourced from Human Development Index published by Central Bureau of Statistics and World Bank. The results showed that human capital that is measured by life expectancy (AHH) and mean years of schooling (MYS) has positive and significant effect to productivity.