Integrating efficient investment in human resources and manpower planning in Indonesia
Swasono, Yudo
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https://hdl.handle.net/2142/22553
Description
Title
Integrating efficient investment in human resources and manpower planning in Indonesia
Author(s)
Swasono, Yudo
Issue Date
1990
Doctoral Committee Chair(s)
McMahon, Walter W.
Department of Study
Education
Discipline
Education
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Labor
Education, General
Education, Vocational
Language
eng
Abstract
The objectives of this research project were to seek economic theory under which the rate of return and manpower requirement approach are logically consistent with one another and to use this to interpret and explain the empirical results in Indonesia. The rate of return analysis was conducted using earnings data taken from the 1987 Labor Force Survey (SAKERNAS). The manpower supply was estimated from the output of the educational system, and the manpower demand was estimated using the employment-output elasticity from the Cobb Douglas and Constant Elasticity of Substitution (CES) production functions.
"The theoretical integration was developed from the duality solution in each labor market between the cost benefit and the supply and demand analysis. The former ""fine tunes"" the latter. A ""well behaved"" relation is defined as a high rate of return accompanied by a shortage of manpower. The ""mis-behaved"" relation where the result diverge was found in the senior and vocational secondary schools and higher education. The divergence can be explained by, among other things, a high wage expectation leading to a long search for employment revealed by the tracer study, and by inadequacy in the current stock of education and skills in the labor force which are extrapolated into the future by manpower requirement approach."
"Application of the ""short cut"" manpower requirement approach, which converts the employment demand directly into educational demand, the application of international comparisons using especially the Korean technical coefficient matrix corrected the mis-behaved relation. The optimum labor force structure is found by adapting the analytic hierarchy process theory developed by Saaty."
The research found that primary and junior secondary schools are externally efficient investment. Senior secondary vocational schools were highly costs and over expanded.
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