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The Role of Preschool Education in Increasing Work Participation and Per Capita Income in Indonesia
Ahmad Tantowi
Journal of Infrastructure Policy and Development 2025, 9(4); https://doi.org/10.24294/jipd9787
Submitted:21 Oct 2024
Accepted:12 Nov 2024
Published:21 Oct 2024
Abstract

The purpose of this study is to examine how early childhood education affects Indonesia's per capita income, labor force participation rate, and human capital development. This study examines the link between these variables and finds substantial changes when a particular threshold is achieved using the dynamic threshold autoregressive (TAR) approach. Variables including the labor force participation rate, human capital development indicators, pre-school education participation rate, and per capita income are among those included by the data, which spans the observation period from 1990 to 2023. The findings indicate that higher rates of pre-school enrollment are positively correlated with higher per capita income, better educational outcomes, and improved population health. In addition, active participation in the workforce also contributes significantly to economic growth. This study also found that per capita income in the previous period has a continuous effect on current economic welfare. These findings provide important insights for policymakers in designing effective strategies to improve economic welfare through investment in education, health, and labor force participation. This research is expected to make a significant contribution to economic and social development in Indonesia.

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