The Impact of Labour Force Participation Rate on The Economic Growth and Human Development Index in Indonesia
Quality of human life in a region demonstrates an achievement of economic development in that region, while the success of a development can also be seen from the economic growth taking place in the region. This research aims to find out the impact of labour force participation rate on the economic growth and human development index in Indonesia. This research employs the method of Ordinary Least Square (OLS). The dependent variable used is the Economic Growth rate and Human Development Index (HDI) meanwhile the independent variable used is the labour force participation rate as the indicator of human resource quality. All variable data are extracted from the value of labour force participation rate, economic growth and human development index in Indonesia from 2008 to 2018. The findings from this research show that the labour force participation rate has significant impacts on economic growth and human development index. The same significant relation is also found between the economic growth and human development index. This can be seen from the value of Sig. which is lower than its grade value of 0.05.
Keywords - Labour Force Participation Rate, Economic Growth, Human Development Index