THE EFFECT OF LOCALLY-GENERATED REVENUE, INVESTMENT, AND EDUCATION ON LABOR ABSORPTION AND PER CAPITA INCOME IN REGENCIES / CITIES OF BALI PROVINCE, INDONESIA

Abstract

Inequality between regencies/cities in Bali Province reflects that there is uneven welfare. This study aims to analyze: (1) The effect of locally-generated revenue, education, and investment on labor absorption in regencies/cities in Bali Province, (2) The effect of locally-generated revenue, education, investment, and labor absorption on per capita income in regencies/cites in Bali Province, (3) The indirect effect of locally-generated revenue, education, and investment on per capita income through labor absorption in regencies/cities in Bali Province, (4) Differences in per capita income between development areas in Bali Province. The analysis technique used is path analysis and ANOVA, the number of observations in this study is 72 observation points which are secondary data. The results showed that the locally-generated revenue and investment had a positive and significant effect on labor absorption, while education has an effect but is not significant on labor absorption. the locally-generated revenue, education, and investment have a positive and significant effect on per capita income, while labor absorption does not affect the per capita income. Per capita income in the development area of East Bali, North Bali, and South Bali has heterogeneous or different variations. The South Bali development area has a higher per capita income than the North Bali and East Bali development areas.

Keywords

• locally-generated revenue
• education
• investment
• labor absorption
• per capita income