The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach

Indonesia has an abundant labor supply, so examining the determinants of earnings that reflect labor productivity is essential. This study is keen to estimate the effect of human capital, demographic factors, and regional (Regency/City) effects on workers’ earnings in the Province of Central Java in...

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Main Authors: Aisya Amalia Rachmadani, Tri Mulyaningsih, Basem Ertimi
Format: Article
Language:English
Published: Muhammadiyah University Press 2023-12-01
Series:Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
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Online Access:https://journals2.ums.ac.id/index.php/jep/article/view/9626
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author Aisya Amalia Rachmadani
Tri Mulyaningsih
Basem Ertimi
author_facet Aisya Amalia Rachmadani
Tri Mulyaningsih
Basem Ertimi
author_sort Aisya Amalia Rachmadani
collection DOAJ
description Indonesia has an abundant labor supply, so examining the determinants of earnings that reflect labor productivity is essential. This study is keen to estimate the effect of human capital, demographic factors, and regional (Regency/City) effects on workers’ earnings in the Province of Central Java in 2022. The data is collected from the National Labor Force Survey (Sakernas). The multilevel mixedeffect regression is employed to assess the effect of individual characteristics and district-level variation on earnings. The study found that human capital, demographic factors, and regional (Regency/City) effects significantly affect earnings. Education and training are essential to improve workers’ skills, leading to higher performance. Further, regional characteristics have contributed to explaining earnings variation across workers in Central Java.
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publisher Muhammadiyah University Press
record_format Article
series Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
spelling doaj-art-b2991c54180d4cdfaf71a28901693f0b2025-08-20T03:17:25ZengMuhammadiyah University PressJurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan1411-60812460-93312023-12-0122123210.23917/jep.v24i2.231239689The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression ApproachAisya Amalia Rachmadani0Tri Mulyaningsih1Basem Ertimi2Department of Development Economics Faculty of Economics and Business, Universitas Sebelas Maret, IndonesiaDepartment of Development Economics Faculty of Economics and Business, Universitas Sebelas Maret, IndonesiaDepartment of Economics, Faculty of Economics, University of Zawia, LibyaIndonesia has an abundant labor supply, so examining the determinants of earnings that reflect labor productivity is essential. This study is keen to estimate the effect of human capital, demographic factors, and regional (Regency/City) effects on workers’ earnings in the Province of Central Java in 2022. The data is collected from the National Labor Force Survey (Sakernas). The multilevel mixedeffect regression is employed to assess the effect of individual characteristics and district-level variation on earnings. The study found that human capital, demographic factors, and regional (Regency/City) effects significantly affect earnings. Education and training are essential to improve workers’ skills, leading to higher performance. Further, regional characteristics have contributed to explaining earnings variation across workers in Central Java.https://journals2.ums.ac.id/index.php/jep/article/view/9626labor earningshuman capitaldemographic factorsregional effects
spellingShingle Aisya Amalia Rachmadani
Tri Mulyaningsih
Basem Ertimi
The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach
Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
labor earnings
human capital
demographic factors
regional effects
title The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach
title_full The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach
title_fullStr The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach
title_full_unstemmed The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach
title_short The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach
title_sort role of human capital and regional effects on earnings multilevel mixed effect regression approach
topic labor earnings
human capital
demographic factors
regional effects
url https://journals2.ums.ac.id/index.php/jep/article/view/9626
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