Analysis of the Effect of Capital Expenditures, Economic Growth and Education Levels on Labor Absorption

Abstract

This study aims to analyze the Influence of Capital Expenditures, Economic Growth and Education Levels on Labor Absorption in the District / City Region of Gorontalo Province. The data used is sourced from the Gorontalo Province Central Bureau of Statistics (BPS) during the period 2010-2015, SIMREG BAPPENAS. The estimation is done by the fixed effect model (FEM) method. The results showed that (i) the amount of Gorontalo Province Capital Expenditures had a negative but not significant effect on the amount of Absorption of Labor. (ii) The Economic Growth of Gorontalo Province has a negative and significant effect on the magnitude of the number of Labor Absorption. (iii) The level of education (measured by APM SMA) in Gorontalo Province has a positive and significant effect on the amount of Absorption of LaborKeywords: Capital Expenditures, Economic Growth, Education Level, fixed effect model (FEM).