Macro-economic impact on educational unemployment in central java-Indonesia
Keywords:
Educated, Employment, Macro-economicAbstract
Educated unemployment is a serious problem experienced by the Central Java provincial government. This study aims to investigates whether macroeconomic factors such as, foreign investment, human development index, population, the least wage of regency, and the economic growth have an impact on educated unemployment which consist of graduated senior high school and bachelor degree in Central Java during period 2017 to 2020This research is quantitative research using a static panel approach. Employing 35 regencies/cities in Central Java during the period 2017 to 2018 as the sample, this research selects Random Effect Model to estimate the regression model. The results show that foreign investment, human development index, and minimum wages have not an effect on educated unemployment. Yet, the population made educated unemployment increase at the 1% confidence level. Meanwhile, economic growth can reduce the number of educated unemployed although it is very weak at the 10% confidence level. Thus, regarding the result of this study, the government needs to reduce the population and increase economic growth on a regular basis to reduce educated unemployment in the region.
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