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Determinants of the Level of Urbanization and Its Effect on Job Opportunities in the City of Makassar

Dewantara, Indraswati Tri Abdireviane and Hamrullah

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Dewantara, Abdireviane, I.T. and Hamrullah, 2021. Determinants of the Level of Urbanization and Its Effect on Job Opportunities in the City of Makassar. United International Journal for Research & Technology (UIJRT), 2(9), pp.22-26.

Abstract

This study aims to determine how much effect government expenditure, cost of living index and poverty index relative to employment opportunities through the level of urbanization in the city of Makassar, Indonesia. The data used is secondary data obtained from the Statistical Centre Board in the period of 2000-2019 or 20 years. The analytical method used is the simultaneous equation estimation method. The results showed that the government expenditure variable had a positive and significant effect on the level of urbanization, but the level of urbanization had no effect on employment opportunities. So overall government expenditure does not indirectly affect employment opportunities through the level of urbanization. The cost of the living index does not indirectly affect employment opportunities through the level of urbanization. The relative poverty index does not indirectly affect employment opportunities through the level of urbanization. Of the 3 variables as a determinant of the level of urbanization, it turns out that only one variable has a significant effect on the level of urbanization, namely the government expenditure variable.

Keywords: employment opportunities, urbanization rates, government expenditure, cost of living index, relative poverty index.

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