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.

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

  • Fauzan Ghazi Alauddin,
  • Heni Wahyuni

摘要

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.