IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v7y2019i1p166-176.html
   My bibliography  Save this article

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

Author

Listed:
  • Gatot Sasongko

    (Satya Wacana Christian University, Indonesia)

  • Andrian Dolfriandra Huruta

    (Satya Wacana Christian University, Indonesia)

  • Kashan Pirzada

    (University Utara Malaysia, Malaysia)

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.

Suggested Citation

  • Gatot Sasongko & Andrian Dolfriandra Huruta & Kashan Pirzada, 2019. "Why labor force participation rate rises? New empirical evidence from Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 166-176, September.
    • Handle: RePEc:ssi:jouesi:v:7:y:2019:i:1:p:166-176
    DOI: 10.9770/jesi.2019.7.1(13)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/25/Sasongko_Why_labor_force_participation_rate_rises_New_empirical_evidence_from_Indonesia.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/361
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2019.7.1(13)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aye Aye Khin, 2022. "Company Values of Malaysian Listed Companies' Sustainability for Palm Oil Industry: Financial Panel Data Model Approach," GATR Journals afr208, Global Academy of Training and Research (GATR) Enterprise.
    2. Idris Gautama So & Hasnah Haron & Anderes Gui & Elfindah Princes & Synthia Atas Sari, 2021. "Sustainability Reporting Disclosure in Islamic Corporates: Do Human Governance, Corporate Governance, and IT Usage Matter?," Sustainability, MDPI, vol. 13(23), pages 1-23, November.
    3. Armenia ANDRONICEANU & Oana Matilda SABIE & Anca PEGULESCU, 2020. "An Integrated Approach Of The Human Resources Motivation And The Quality Of Health Services," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 15(1), pages 42-53, February.
    4. Rafael Ravina-Ripoll & María-José Foncubierta-Rodríguez & Eduardo Ahumada-Tello & Luis Bayardo Tobar-Pesantez, 2021. "Does Entrepreneurship Make You Happier? A Comparative Analysis between Entrepreneurs and Wage Earners," Sustainability, MDPI, vol. 13(18), pages 1-19, September.

    More about this item

    Keywords

    labor force participation rate; Gross Regional Domestic product per capita; life expectancy; Indonesia;
    All these keywords.

    JEL classification:

    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • J89 - Labor and Demographic Economics - - Labor Standards - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:7:y:2019:i:1:p:166-176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.