Özet:

This study examines the impact of human capital on productivity of labor in Indonesia, using the ARDL analysis data method. This study uses the variable of human capital with a proxy level of labor education, the health status of labor and labor productivity. The data used are sourced from World Bank publications in the period of 1981-2014. The outputs of the analysis with the method of ARDL show that the short-run analyses of primary, secondary, tertiary education variables and health variables have a significant positive impact on labor productivity. In contrast, the long-run analysis including only primary and secondary educations showed a significant positive influence on labor productivity while tertiary education variables have a significant negative effect. The labors’ health variable has a positive but not significant effect. This shows that the quality of human capital in Indonesia is still a problem for labor productivity.

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