EXPLORING UNEMPLOYMENT DYNAMICS IN EASTERN INDONESIA: PANEL REGRESSION APPROACH
DOI:
https://doi.org/10.5281/zenodo.20471480Keywords:
Unemployment, Poverty, HDI, Economic GrowthAbstract
One of the biggest issues Eastern Indonesia faces is geographic isolation. There are limited employment marketplaces and economic prospects in this region because many areas are difficult to access due to inadequate transportation. Inadequate educational opportunities also contribute significantly to the problem of unemployment. Eastern Indonesia has several areas with poor educational infrastructure, which contributes to a low-skilled labor force. Furthermore, the unemployment issue is made worse by the difference in economic growth between Western and Eastern Indonesia. Sustainable Development Goals (SDGs) aim to eradicate poverty, safeguard the environment, and guarantee prosperity for all. SDG 8, which focuses on unemployment in this instance, addresses the topic of employment and good work for everyone. The aim of this research is to investigate the relationship between unemployment in Indonesia's Eastern Region and poverty, economic growth, and the human development index. investigated using the FEM approach and the panel data analysis method with the statistical program E-Views 10. According to the analysis's findings, unemployment is significantly impacted negatively by the human development index variable, positively and significantly by poverty, and not significantly impacted by economic growth.
References
Antipova, A. (2021). Analysis of the COVID-19 impacts on employment and unemployment across the multi-dimensional social disadvantaged areas. Social Sciences & Humanities Open, 4(1), 100224.
Afonso, O., et al. (2020). "Economic Growth and Youth Unemployment in Developing Countries: A Structural Analysis." World Development, 134, 105-118.
Aghion, P., et al. (2022). "Human Development and Labor Market Outcomes: A Global Perspective." World Development, 147, 105-117. DOI: 10.1016/j.worlddev.2021.105117.
Afonso, O., & Mota, R. (2023). "The Role of Human Development in Reducing Unemployment in Developing Countries." Social Indicators Research, 164(2), 345-367. DOI: 10.1007/s11205-022-02943-0.
Arsyad, L., et al. (2021). "Economic Growth and Regional Disparities in Indonesia: A Case Study of Eastern Indonesia." Journal of Economic Development, 46(2), 1-15. DOI: 10.1007/s10888-021-09577-8.
Blanchard, Olivier and Johnson, R David. 2017. Macroeconomics Sixth Edition. Jakarta: Erlangga.
Bank Dunia. (2020). Indonesia Economic Prospects: Navigating the Pandemic. Washington, DC: Bank Dunia.
Bappenas. 2018. Analysis of High Poverty Areas. Jakarta: Deputy for Population and Employment.
Bappenas. (2020). Rencana Pembangunan Jangka Menengah Nasional (RPJMN) 2020-2024. Kementerian Perencanaan Pembangunan Nasional Republik Indonesia.
Bank Indonesia. 2014-2019. Regional Financial Economics Study. https://www.bi.go.id/id/publikasi/laporan/lpp/default.aspx.
Cincera, M., et al. (2021). "The Impact of Economic Growth on Job Creation Across Sectors." Journal of Economic Growth, 26(2), 123-145.
Economic Development Board. (2004). Reforming Bahrain’s Labor Market. Summary of Workshop Presentations September 23, 24. (EDB): Bahrain.
Gujarati, Damodar N and Dawn C porter, 2012. Basics of Econometrics. Jakarta: Salemba Empat.
Greene, W. (2008). Econometric analysis, 6th ed. New Jersey: Pearson-Prentice Hall
Ghosh, S., & Ghosh, D. (2021). "The Impact of Poverty on Employment Opportunities: Evidence from India." International Journal of Employment Studies, 29(1), 12-30.
Herbener, J. M. (2011). The Fallacy of the Phillips Curve". Dissent on Keynes: A Critical Appraisal of Keynesian Economics. New York: Praeger
Kurnia, R. E., & Septiani, Y. (2021). Social and economic factors determining the
Unemployment rate in the Bregasmalang region 2010-2020. Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah, 16(1).
Karanasos, M., et al. (2023). "Economic Growth, Technological Change, and Unemployment: A Complex Relationship." Applied Economics Letters, 30(4), 345-350.
Kahn, M. E., & Garcia, M. (2022). "Government Policies and Their Impact on Employment During Economic Expansion." International Journal of Employment Studies, 30(1), 67-89.
Lestari, A., & Fitria, M. (2021). "The Impact of Human Development Index on Unemployment Rate: Evidence from Indonesia." Journal of Economic Development, 46(1), 25-40. DOI: 10.1007/s10888-020-09576-7.
Majeed, M. T., & Khan, M. A. (2020). "Human Development Index and Unemployment: A Panel Data Analysis." International Journal of Employment Studies, 28(3), 45-60. DOI: 10.1111/ijes.12145.
Mankiw, N. G., & Weil, D. N. (2023). "The Interplay of Poverty and Unemployment in Developing Countries." World Development, 154, 105-118.
Nurcholis, M. (2014). Analisis Pengaruh Pertumbuhan Ekonomi, Upah Minimum dan Indeks Pembangunan Manusia Terhadap Tingkat Pengangguran di Provinsi Jawa Timur Tahun 2008-2014. Jurnal Ekonomi Pembangunan, 12(1), 48–57.
Nurhayati, N., & Supriyadi, S. (2021). "Impact of COVID-19 on Employment in Eastern Indonesia: Challenges and Opportunities." International Journal of Employment Studies, 29(1), 45-62. DOI: 10.1111/ijes.12150.
Priastiwi, D., Handayani, H.R. (2019). Analysis of the Influence of Population, Education, Minimum Wage, and GRDP on the Open Unemployment Rate in Central Java Province. Diponegoro Journal of Economics, 1(1), 159-169.
Romhadhoni, P., Faizah, D. Z., & Afifah, N. (2019). The Influence of Regional Gross Regional Domestic Product (GRDP) on Economic Growth and Open Unemployment Rates in DKI Jakarta Province. Journal of Integrative Mathematics, 14(2), 113.
Sutherland, L., & Sutherland, J. (2022). "Unemployment and Poverty: A Longitudinal Analysis." Social Indicators Research, 162(3), 1023-1045
Suparman Suparman & Muzakir Muzakir (2023) Regional inequality, human capital, unemployment, and economic growth in Indonesia: Panel regression approach, Cogent Economics & Finance, 11:2, 2251803, DOI:10.1080/23322039.2023.2251803.
Sahoo, S., & Dash, R. K. (2020). "Poverty and Unemployment: A Study of the Indian Economy." Journal of Economic Development, 45(2), 45-68.
Tsaurai, K. (2020). Macroeconomic determinants of unemployment in Africa: A panel data. Acta Universitatis Danubius. Œconomica. analysis approach. Acta Universitatis Danubius. Œconomica, 16(2).
Teddy Ch Leasiwal. Hermi, Oppier. Ali, T. Adelcia P. 2022. Examining The Effects of Economics Growth on Employment in Indonesia. Journal Of Social Science.
The World Bank. (2016). Unemployment, total (% of total labor force) (modeled ILO estimate).
UNDP (United Nations Development Programme). (2020). Human Development Report 2020: The Next Frontier – Human Development and the Anthropocene. New York: UNDP.
UNDP. (2021). Human Development Report 2021: The Next Frontier – Human Development and the Anthropocene. New York: UNDP.
Widarjono, A. (2013). Econometrics Theory and Applications to Economics and Business. Yogyakarta: Econosia FE UII.
Weiss, Y. (2009). Work and Leisure: A history of Ideas. Journal of Labor Economics,
27(1), 1 20.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Lailan Syafrina Hasibuan, Khaira Amalia Fachrudin
This work is licensed under a Creative Commons Attribution 4.0 International License.
