Studies into the impact of social capital on welfare are currently growing. However, studies for the case of the developing countries, including Indonesia, are still very rare. Therefore, this paper aims to analyze the impact of social capital on welfare in Indonesia. In this study, social capital is measured by three indicators, namely, trust, cooperativeness and the social network (a person’s participation in community activities).Welfare is measured by household expenditure for food and non-food items. The data are acquired from the Indonesian Family Life Surveys for the years 2007 (IFLS4) and 2014 (IFLS5). This research uses instrumental variables to address the endogeneity issue on social networking (participation in community activities), which is a potential two-way causal relationship. It means that individuals with higher welfare (income) have a higher possibility of participating in community activities, since their participation in community activities is a leisure activity and the utilization of leisure is higher for higher-income people.Using the Instrumental Variables (IV) method and marital status as an instrument, the study found that social capital has a significant impact on welfare. An increased participation in community activities will improve ones welfare by 11.7 percent. Moreover, an increase of cooperativeness by one percent, would increase the welfare by 0.2 percent. On the other hand, trust has a negative relationship with welfare. It means that an increase in trust among individuals by one percent will cause household expenditure on food and non-food items to drop by 0.3 percent.It may imply that higher trust will cause lower transaction costs, which will reduce the expense of individuals buying food and non-food items. Since the coefficient of IV is larger than the coefficient in the OLS estimation, it indicates the absence of reversed causality. The results of this study have an implication for policy decision making which suggests that the policy decision makers should consider the impact of social capital on welfare and support the increase of individuals’ participating in community activities.
Promoting vocational secondary education can be an appealing option for developing countries in order to improve labour market outcomes. The main reason for the promotion of vocational education is the increase of the labour force. The debate regarding the benefit resulted from vocational education, as opposed to general education is far from conclusive. This paper analyses the return to schooling of vocational and general highschools in Indonesia using Indonesian Family Life Survey (IFLS). The study finds no difference in the returns to schooling between vocational and general high-schools in Indonesia. The findings may imply that the government should focus on promoting general education, especially in the developing countries such as Indonesia, easing the access to higher education, as well as improving the curriculum in vocational education.
Introduction: The aim of this study is to analyze the influence of early marriage on monetary poverty in Indonesia. Background Problems: Recent studies on early marriage show that the prevalence of early marriage in Indonesia reached 13.5 percent (Marshan et al., 2013) and that early marriage is exacerbated poverty which causes an increase of economic burden of the family (Djamilah, 2014), an increase of family harassment, divorce and not continuing individuals to schools (Putranti, 2012), and an increase of chances of poverty by 31 percent in the United States (Dahl, 2010). However, most studies are qualitative studies. Research Methods: The study uses recent data on Indonesian Family Life Survey (IFLS), the year 2014; with a sample of women who are marriages at age less than 18 years old for their first marriage as a proxy for early marriage; and monthly per capita income as a measurement of monetary poverty. This study employs a binary method for binary dependent variable which is whether the woman experiences monetary poverty. Findings/Results: The result shows that the prevalence of early marriage in Indonesia is reached 16.36 percent. Among those, 46.61 percent of the women who were married in their teens (before 18 years old) do not pass the nine-years basic education, and 52.35 percent of the early marriage woman does not have a health insurance card. The results of binary probit model show that early marriage does not affect the possibility of a woman experiencing monetary poverty. It means that early marriage does not influence the monthly per capita income of the women. Conclusion: The results of this study may imply that other measurements of poverty may be needed to be concerned. Therefore, the policies that are related to reducing early marriage should consider the impact of other factors on poverty.
AbstrakHubungan antara pertumbuhan ekonomi dan kesenjangan pendapatan selalu menjadi perdebatan. Perdebatan ini selalu muncul dengan pertanyaan, apakah ada hubungan antara meningkatnya pertumbuhan ekonomi dengan menurunnya kesenjangan pendapatan. Essai ini mereviu perdebatan ini melalui studi pengalaman beberapa negara dan menganalisis apakah ada hubungan antara pertumbuhan dan kesenjangan di negara-negara tersebut. Namun demikian, diskusi yang disampaikan tidak hanya mencakup analisis apakah ada hubungan tersebut atau tidak, tetapi juga yang lebih penting adalah penekanan terhadap kesenjangan dalam masyarakat yang paling miskin. Ini berarti bahwa, mencari mekanisme untuk meningkatkan kondisi "si miskin" menjadi lebih baik, sehingga dapat menurunkan kesenjangan antara golongan miskin dengan kaya yang pada akhirnya dapat mewujudkan pemerataan pendapatan yang lebih baik. Dalam essai ini juga dipresentasikan usulan kebijakan yang menekankan pada kebijakan ekonomi yang menjadikan penduduk miskin sebagai target kebijakan.Kata kunci: Pertumbuhan ekonomi, kesenjangan pendapatan
Melinjo tree is a tree that is commonly found in Cilayang Village, Cikeusal District. Melinjo has many benefits, the wood can be used as a simple board and household appliance, the young leaves are referred to as so in Javanese used as vegetable ingredients, for example in the vegetable asem flowers and seeds that are still small or that have been cooked are also used as vegetables, melinjo seeds are also used as raw materials for emping, and the skin can be used as a vegetable. To improve the economy of the people of Cilayang Village, especially for housewives, it is necessary to have innovation from this melinjo. The implementation of this community service activity is in the form of assistance for EMPING MSMEs in Cilayang Village. The innovation carried out from emping is by creating a press machine to facilitate the production process, variations in emping flavors with four flavors, namely original, salty, pedaas, and original. As well as the packaging of empings that are packaged to be more modern. As a result of this activity, the people of Cilayang Village are able to produce light food from melinjo fruit
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