The Role of Education in Human Capital Investment and Total Employment in Indonesia

English

Abstract

This study aims to look at education investment, and health investment in Indonesia by using total
employment as an indicator. To achieve this goal, data on the behavior of education investment, health
investment, and total employment are observed. This study uses the Quantitative Threshold
Autoregressive method which is used to predict the behavior of the data so that the relationship behavior
between the data can be seen. We found that investments in human resources in education and health
can improve human quality. However, this does not guarantee the absorption of labor, which is indicated
by the continuous increase in the number of jobs in the long term. In encouraging employment, other
investments are needed, namely in the field of business and infrastructure so that the increase in human
capital which is an indicator of improving human quality through investment in education and health can
go hand in hand with the growth of employment opportunities in Indonesia.