HUMAN DEVELOPMENT, UNEMPLOYMENT AND INDONESIAN MIGRANT WORKERS

Abstract

Three objectives are proposed by this study. The first objective is to examine the long-run relationship among human development, unemployment and the Indonesian Migrant Workers (IMWs). This is followed by examining the causality between the human development and unemployment respectively and the IMWs in the second objective. The extent to which the human development and unemployment determine the IMWs is examined in the third objective. The study is based on time series data and utilizes a Vector Autoregressive (VAR) framework. The findings show that the human development, unemployment and the IMWs are co-integrated. The human development and unemployment respectively causes the IMWs in the short run and in the long run.  Human development has a negative significant effect on the IMWs while unemployment has a positive significant effect on the IMWs.