Evaluating the Impact of Prakerja Program on Income and Employment: Evidence from Sakernas Data

Fauzan Ghazi Alauddin () and Heni Wahyuni ()
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Fauzan Ghazi Alauddin: University of Gadjah Mada
Heni Wahyuni: University of Gadjah Mada

A chapter in Economics and Finance Readings, 2025, pp 117-133 from Springer

Abstract: Abstract In April 2020, the Indonesian government launched the Prakerja Program aimed at improving the skills and competitiveness of the workforce. This initiative offers financial support to individuals seeking to enroll in a variety of training courses. This research assesses the program’s effectiveness by utilizing data from Sakernas and employing the instrumental variable approach to mitigate endogeneity issues. The results reveal that participation in the program leads to an increase in both income and the likelihood of employment. Furthermore, the program significantly boosts income and employability in Java and urban regions. Conversely, its impact appears to be limited in non-Java areas, where it primarily facilitates income growth with minimal influence on employment opportunities. In rural areas, the program does not exhibit a significant effect on income or employment prospects, regardless of whether they are in Java or outside Java.

Keywords: Program evaluation; Prakerja program; Income; Employment probability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-6998-1_7

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DOI: 10.1007/978-981-96-6998-1_7

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