Indeks kecekapan buruh menggunakan analisi sempadan stokastik

Abstract

The labour institution of a nation plays an important role in developing a strong economic performance. However, the question on the degree of its efficiency remains unanswered. The purpose of this study is to determine an efficiency index so-called the Labour Efficiency Index (LEI) in an attempt to answer the highlighted question. Firstly, the index formula employed in various index such as the Consumer Price Index (CPI) and the Human Development Index (HDI) were used to produce two types of the index namely Fixed Base and Chained Base. Then, these index values were combined with the technical efficiency component, 𝑢 in the Stochastic Frontier Analysis (SFA) to produce the desired LEI index. The variables used in the SFA and the index model can be classified into seven dimensions called the output, labour force supply, participation and unemployment rate, level of education, capital, opportunity, and security and threat.