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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2019-03-15  |  Accepted: 2019-07-28  |  Published: 2019-09-30

Title

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.


Keywords

labor force participation rate, Gross Regional Domestic product per capita, life expectancy, Indonesia


JEL classifications

J80 , J82 , J89


URI

http://jssidoi.org/jesi/article/361


DOI


Pages

166-176


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Sasongko, Gatot
Satya Wacana Christian University, Salatiga, Indonesia http://www.uksw.edu
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Huruta, Andrian Dolfriandra
Satya Wacana Christian University, Salatiga, Indonesia http://www.uksw.edu
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Pirzada, Kashan
University Utara Malaysia, Changlun, Malaysia http://www.uum.edu.my
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Journal title

Entrepreneurship and Sustainability Issues

Volume

7


Number

1


Issue date

September 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References