Integration of Goods Market and Labor Market at Education Perspectives in Indonesian Agricultural Sector

摘要

For Decades, Indonesia's economic growth has no impact on the more power of agricultural sector. The agricultural sector is still Characterized by subsistence, low education, low productivity, low income and underemployment. It is the caused by high dominance uneducated workforce in this sector. Hence the attention to quality and the development of human capital should be Increased in order to encourage economic growth in the agricultural sector. The purpose of this study is to analyze the economic integration of goods markets and labor markets in Indonesian agricultural sectors at the education perspective. Research methods are historical research. The Data used is secondary the data years 1977-2013 to the variable Gross Domestic Product (GDP) and employment of educated and uneducated agricultural sector. Data collected by documentation. Analysis method using Vector Error Correction Model (VECM). The results showed that the growth in GDP of agricultural sector is still up to the growth of employment both educated and uneducated; Increased employment growth in educated uneducated but declined employment. The development of the agricultural GDP and educated agricultural employment is determined by uneducated employment. There is integration between the labor market and the agricultural product market. Diminishing employment uneducated cause increasing the number of educated employment and GDP of agriculture sector.