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The Effect of Pisa Score, Tertiary Education, and Wages on Labor Productivity in Indonesia

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This analysis reveals how human capital and wages affect labor productivity in Indonesia, suggesting key policies.

Labor productivity is significantly influenced by human capital, highlighting the importance of education.
Average wages did not show a significant impact on labor productivity when combined with human capital.
This study is grounded in theories like Total Factor Productivity and Becker’s Human Capital.
In Indonesia, enhancing educational attainment could be crucial for realizing the demographic bonus.

Hapsari et al. (2025) studied this question.

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