The Influence of Economic Factors and Educational Institutional Factors on Primary School Dropout in Indonesia, 2021–2023

Dwi Nur Cahyarani; Wenny Restikasari

doi:10.55927/fjmr.v5i5.90

Authors

Dwi Nur Cahyarani Universitas Negeri Surabaya
Wenny Restikasari Universitas Negeri Surabaya

DOI:

https://doi.org/10.55927/fjmr.v5i5.90

Keywords:

School Dropout, Child Labor, Poverty, GRDP Per Capita, BOS Funds

Abstract

Primary school dropout remains an important issue in Indonesia’s education system as it may affect the quality of human resources in the future. This study aims to analyze the influence of economic factors and educational institutional factors on the number of primary school dropouts in Indonesia during the period 2021–2023. This study uses panel data from 34 provinces in Indonesia and applies panel data regression analysis using the Fixed Effects Model (FEM). The results show that the percentage of child labor, poverty rate, and the number of primary schools have a positive and significant effect on the number of primary school dropouts, while School Operational Assistance (BOS) funds have a negative and significant effect. Meanwhile, GRDP per capita and the percentage of qualified teachers do not have a significant effect on the number of primary school dropouts. These findings highlight the importance of economic conditions and educational support in reducing school dropout rates.

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