Productivity of Small-Scale Industrial Labor and Economic Growth in Indonesia

Abstract

This study aims to find out and empirically test the influence of technology, health benefit, wages of Labor on the productivity of small scale industrial Labor in Indonesia. Using provincial panel data in Indonesia during the period 2014-2018, the analysis used is the panel regression method with two equations for the productivity. The best model is obtained by Random Effect. The estimation findings show, that in labor productivity equation, health benefits have negative effects and wages have positive effect, while technology has no effect on the labor productivity. The equation of economic growth equations found by the findings of productivity of small scale industry labor have positive effect, on economic growth, while the competitiveness of small scale industries has no effect.