Efisiensi Belanja Modal Manusia di Provinsi Jawa Tengah dan Pengaruhnya Terhadap Produktivitas Tenaga Kerja

Education and health play a crucial role in improving the quality of human capital since high education and good health can make people more productive. This study estimated the efficiency level of government spending in education and health, as well as the effect of education and health spending efficiency on labor productivity in Central Java from 2013 to 2020. The analysis tools used in this study were Data Envelopment Analysis (DEA) and a panel data regression model with the Fixed Effects approach. The results of the DEA analysis showed that on average, there are only nine districts/cities in which education expenditures have achieved perfect efficiency. As for health, in average efficiency scores, there are no districts/cities that have achieved perfect efficiency. The results of panel data regression showed that the efficiency of education spending had no effect on labor productivity, while the efficiency of health spending was statistically proven to have a positive effect on labor productivity. The government is expected to be able to evaluate the use of the education and health spending budget that is tailored to the needs of each region, so that there is no waste and the local government immediately makes improvements. In addition, every company should hold regular checks and improve health insurance