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Abstract
Method - This study employs a quantitative approach using panel data from 35 districts/cities over the period 2017–2024. The analysis is conducted using panel data regression with the Fixed Effect Model (FEM), selected through Chow and Hausman tests to ensure robust estimation.
Main Findings - The results reveal that education and wages serve as the primary drivers of HDI, with positive and significant effects. In contrast, health (proxied by outpatient health complaints) and unemployment exhibit negative and significant impacts, indicating structural constraints in healthcare quality and labor market performance. These findings suggest that improvements in human development are not solely driven by human capital accumulation but also depend on the effectiveness of socio-economic systems.
Theory and Practical Implications - The findings reinforce human capital theory by emphasizing the need for integrated development across education, health, and labor sectors. Policy interventions should prioritize improving healthcare quality, aligning education with labor market demands, and promoting inclusive employment opportunities.
Novelty - This study offers an empirical panel data approach at the district/city level, providing a more comprehensive understanding of the multidimensional relationship between socio-economic factors and HDI.
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