Why labor force participation rate rises? New empirical evidence from Indonesia

Abstract

The labor force participation rate in Indonesia has increased during the period from 2008 to 2017. This paper attempt to investigate the issue, three independent variables encompassing, gross regional domestic product per capita at current prices, male life expectancy, and the number of dependents were considered in this paper, to understand if the selected variables have an impact on the increase in the labor force participation rate in Indonesia. The regional panel data obtained from the Indonesian central bureau of statistics was extracted from the period of 2010 to 2015. The panel data model and the Hausman test were applied to test the hypotheses. The findings indicate that the fixed effect model is suitable for data analysis. The results reveal that gross regional domestic product per capita at current prices positively affect the labor force participation rate while male life expectancy was noted to have a negative effect on the labor force participation rate. Theoretically, a lower income and a higher life expectancy would encourage more people to enter the labor market, but the Indonesian data showed the different and interesting results.

Sustainability Reporting Disclosure in Islamic Corporates: Do Human Governance, Corporate Governance, and IT Usage Matter?

“…Stakeholder Theory is being advanced as a viable alternative to the shareholder value model, particularly in the aftermath of the global financial crisis and the growing importance of government in industries critical to economies' national interests [49,50]. Focusing on longer-term returns is acceptable in stakeholder economies because investors have a long-term relationship with the firm, resulting in a more balanced relationship between labor and capital than under the shareholder value model [51]. [52] also postulates a positive relationship between sustainable business practices and firm performance.…”

Does Entrepreneurship Make You Happier? A Comparative Analysis between Entrepreneurs and Wage Earners

“…Similarly, the pairs of hypotheses to be contrasted that relate to the variable of studies, level of income, and the degree of happiness are analyzed (H 1EmpStud and H 1EmpInc ). The same hypotheses would be proposed for the categories of permanent employees and temporary employees, allowing comparison [60].…”

Peran Substitusi Suami Ketika Istri Bekerja di Sektor Tertentu

“…Unit analisis dalam penelitian ini adalah individu dan unit sampel adalah laki-laki menikah berusia 19 tahun ke atas yang memiliki pekerjaan dan tinggal dengan pasangannya dan diperoleh sampel seabnyak 30.918 individu. Pemilihan unit sampel dibatasi pada laki-laki bekerja karena ketertarikan pada Indonesia sebagai negara patriarki (Sasongko et al, 2019) memungkinkan laki-laki cenderung mempertahankan maskulinitasnya dengan fokus pada mencari nafkah dan menganggap pekerjaan rumah tangga sebagai kegiatan feminin (Kamp Dush et al, 2018). Pembatasan sampel tersebut memungkinkan adanya selectivity bias.…”