Human Capital in Agriculture Sector in Indonesia

Abstract

This study aims to examine the role of education and health in increasing work participation and income of the people in Indonesia. To achieve this goal, data on GDP per capita, Employment in Agriculture, Health, and education 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. In analyzing the threshold variable, the GDP per capita variant is used as an indicator of people's income growth, Employment in agriculture as work participation in the agricultural sector, health as an indicator of health investment, and education as an indicator of educational investment. GDP per capita, Employment in agriculture, and health as the threshold variable. Meanwhile, the non-threshold variable is education. All data are secondary data from world banks with an annual period of 2000 - 2019. We found that education and health are two things that form the basis of human capital. The role of education and health in Indonesia in developing agriculture and improving the welfare of the people in Indonesia plays an important role and is able to make a significant contribution to the development of the agricultural sector and the welfare of the people in Indonesia.