This study aims to identify the effect of Gross Enrollment Rate (GER) at Junior High School (JHS) and Senior High School (SHS), Literacy Rate (LTR), Mean Years of School (MYS), Human Development Index (HDI), and Provincial Minimum Wage (PMW) on the Open Unemployment Rate (OUR) in 34 Provinces of Indonesia in 2005-2024. The estimation results using the Generalized Method of Moment (GMM) panel show that GERJHS has a positive and significant effect on the unemployment rate (OUR), while the GERSHS has a negative and significant effect on the unemployment rate. For other variables such as LTR and MYS have a negative and significant effect on the unemployment rate. The HDI variable has a positive and significant effect, while the PMW variable has two significant effects, namely positive and negative on the unemployment rate. These findings can provide a reference for policy makers to improve the compulsory education program (Wajar) both in terms of duration, quantity and quality of implementation so that it can continue to reduce the unemployment rate in Indonesia.
Atiqah et al. (Thu,) studied this question.
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