The role of preschool education in increasing work participation and per capita income in Indonesia

Ahmad Tantowi

Article ID: 9787
Vol 9, Issue 4, 2025

VIEWS - 55 (Abstract)

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.

Keywords


preschool education; human capital development; labor participation; per capita income; Threshold Autoregressive (TAR) model; economic and social development

Full Text:

PDF


References

  1. Afriani, I. A. H. (2021). Educational psychology: Understanding child development. Triple Nine Communication Press.
  2. Alcott, B., Banerji, M., Bhattacharjea, S., et al. (2018). One step forward, two steps back: transitions between home, pre-primary and primary education in rural India. Compare: A Journal of Comparative and International Education, 50(4), 482–499. https://doi.org/10.1080/03057925.2018.1527214
  3. Allen, D., & Drean, B. (2022). Why is Human Capital Investment Not Immediate Impact? Investigating the Impact of Human Capital, Financial Capital, and Technological Capital on Economic Growth in Malaysia. Tamansiswa Management Journal International, 5(1), 56–65. https://doi.org/10.54204/tmji/vol512022009
  4. Attanasio, O., Cattan, S., & Meghir, C. (2022). Early Childhood Development, Human Capital, and Poverty. Annual Review of Economics, 14(1), 853–892. https://doi.org/10.1146/annurev-economics-092821-053234
  5. Bailey, M. J., Sun, S., & Timpe, B. (2021). Prep School for Poor Kids: The Long-Run Impacts of Head Start on Human Capital and Economic Self-Sufficiency. American Economic Review, 111(12), 3963–4001. https://doi.org/10.1257/aer.20181801
  6. Bartik, T. J. (2020). Using Place-Based Jobs Policies to Help Distressed Communities. Journal of Economic Perspectives, 34(3), 99–127. https://doi.org/10.1257/jep.34.3.99
  7. Investing in early childhood development in preschool and at home. (2023). Handbook of the Economics of Education, 1–91. https://doi.org/10.1016/bs.hesedu.2022.11.005
  8. Kaur, J., & Sharma, A. (2021). Establishing Early Foundations to Promote Emotional Competence in Preschool Children. Journal of Applied Social Science, 16(2), 399–418. https://doi.org/10.1177/19367244211054381
  9. Kim, J. H. (2022). Preschool participation and students’ learning outcomes in primary school: Evidence from national reform of pre-primary education in Ethiopia. International Journal of Educational Development, 94, 102659. https://doi.org/10.1016/j.ijedudev.2022.102659
  10. Klasen, S., Le, T. T. N., Pieters, J., et al. (2020). What Drives Female Labour Force Participation? Comparable Micro-level Evidence from Eight Developing and Emerging Economies. The Journal of Development Studies, 57(3), 417–442. https://doi.org/10.1080/00220388.2020.1790533
  11. Lee, C.-C., Xing, W., & Lee, C.-C. (2022). The impact of energy security on income inequality: The key role of economic development. Energy, 248, 123564. https://doi.org/10.1016/j.energy.2022.123564
  12. Lin, X., Zhao, Y., Ahmad, M., et al. (2021). Linking Innovative Human Capital, Economic Growth, and CO2 Emissions: An Empirical Study Based on Chinese Provincial Panel Data. International Journal of Environmental Research and Public Health, 18(16), 8503. https://doi.org/10.3390/ijerph18168503
  13. Mamadaminova, N. (2021). Роль дошкільної освіти у розвитку дитини та аналіз існуючої системи дошкільної освіти в Узбекистані. Journal of Vasyl Stefanyk Precarpathian National University, 8(1), 205–211. https://doi.org/10.15330/jpnu.8.1.205-211
  14. Nath, S. R. (2020). Capability of Preschool Education in Enhancing Primary School Competencies in Bangladesh. Journal of Research in Childhood Education, 36(1), 14–30. https://doi.org/10.1080/02568543.2020.1838976
  15. Oswald-Egg, M. E., & Renold, U. (2021). No experience, no employment: The effect of vocational education and training work experience on labour market outcomes after higher education. Economics of Education Review, 80, 102065. https://doi.org/10.1016/j.econedurev.2020.102065
  16. Priyanto, E., Widarni, E. L., & Bawono, S. (2022). The Effect of Internet Inclusion on Financial Inclusion in P2P Lending in Indonesia Based on Human Capital Point of View. Modeling Economic Growth in Contemporary Indonesia, 107–121. https://doi.org/10.1108/978-1-80262-431-120221008
  17. Saitadze, I., & Lalayants, M. (2020). Mechanisms that mitigate the effects of child poverty and improve children’s cognitive and social–emotional development: A systematic review. Child & Family Social Work, 26(3), 289–308. Portico. https://doi.org/10.1111/cfs.12809
  18. Sierens, S., Van Avermaet, P., Van Houtte, M., et al. (2020). Does pre-schooling contribute to equity in education? Participation in universal pre-school and fourth-grade academic achievement. European Educational Research Journal, 19(6), 564–586. https://doi.org/10.1177/1474904120925981
  19. Summan, A., Nandi, A., & Bloom, D. E. (2023). A Shot at Economic Prosperity. American Journal of Health Economics, 9(4), 552–583. https://doi.org/10.1086/723591
  20. Triatmanto, B., & Bawono, S. (2023). The interplay of corruption, human capital, and unemployment in Indonesia: Implications for economic development. Journal of Economic Criminology, 2, 100031. https://doi.org/10.1016/j.jeconc.2023.100031
  21. Trude, A. C., Richter, L. M., Behrman, J. R., Stein, A. D., Menezes, A. M., & Black, M. M. (2021). Effects of responsive caregiving and learning opportunities during pre-school ages on the association of early adversities and adolescent human capital: an analysis of birth cohorts in two middle-income countries. The Lancet Child & Adolescent Health, 5(1), 37-46. https://doi.org/10.1016/S2352-4642(20)30309-6
  22. Uludag, G. (2021). Views of Preschool Teachers on Using Out-of-School Learning Environments in Preschool Education. International Online Journal of Education and Teaching, 8(2), 1225-1249.
  23. Viphindrartin, S., & Bawono, S. (2021). International Economics. Triple Nine Communication Press
  24. Weisshaar, K., & Cabello-Hutt, T. (2020). Labor Force Participation Over the Life Course: The Long-Term Effects of Employment Trajectories on Wages and the Gendered Payoff to Employment. Demography, 57(1), 33–60. https://doi.org/10.1007/s13524-019-00845-8
  25. Widarni, E. L., & Bawono, S. (2021). Human capital investment: For better business performance. Triple Nine Communication Press.
  26. Widarni, E. L. (2022). Improving the Quality of Human Resources through the Application of Good Psychology and Human Capital. Asia Pacific Journal of Management and Education, 5(3), 25–36. https://doi.org/10.32535/apjme.v5i3.1550
  27. Widarni, E. L., Bawono, S., & Chapuzet, A. C. (2024). The Role Of Human Capital And Digital Financial Inclusion On Economic Performance In The Southeast Asia Region. Tamansiswa Accounting Journal International, 13(1), 111-120.
  28. Yasmin, S., Rumi, M. A., & Robert, S. (2020). Impact of pre-primary education on children in Bangladesh: A study on government primary schools in Sylhet city. American Journal of Educational Research, 8(5), 251-258.


DOI: https://doi.org/10.24294/jipd9787

Refbacks

  • There are currently no refbacks.


Copyright (c) Author(s) 2025

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.