Thomas Soseco

It was my pleasure to meet colleagues and students from Universiti Teknologi MARA (UiTM) Malaysia during a lecture session titled The Role of Microeconomics and Macroeconomics in Development on Saturday, 30 November 2024. The session was chaired by Mr. Azizul Azhan Bin Hussain (Joe) and attended by over 233 participants via Google Meet and YouTube. In my presentation, we discussed the core concepts of the economy and its main challenges. We also explored the difference between microeconomics and macroeconomics, as well as their interconnection. Additionally, we extended the discussion to our publication titled "An Application of the Dagum Type III Model to Measure Household Net Wealth Inequality in Indonesia." The paper can be accessed here: https://thomassoseco.blogspot.com/2024/09/an-application-of-dagum-type-iii-model.html A special thanks to Ms. Nur Azwani Mohamad Azmin for making this session possible.

On Tuesday, 5 November 2024, the 2024 Disability Festival ( Festival Disabilitas ), hosted by PLPBK LPPP Universitas Negeri Malang, provided a platform to address important issues surrounding disabilities. The event brought together individuals with disabilities, parents, teachers, and community members to raise awareness and encourage action. In addition to insightful discussions, the festival featured performances and exhibitions that highlighted the talents and creativity of individuals with special needs. I had the honour of being the speaker for the talkshow session, where I presented on "The Role of Higher Education in Optimising the Potential of Individuals with Special Needs: Employment Transition." During the session, we focused on the challenges of disability, employment, and the wage gap in Indonesia, particularly how higher education can serve as a key driver in improving labour market outcomes for individuals with disabilities (PwD). We also discussed the finding...

Paper presented in Festival Disabilitas UM,  Malang, Indonesia Tuesday, 5 November 2024 Introduction The inclusion of individuals with disabilities in the labor market is not just a matter of social justice but also a key component of economic growth. As nations strive for higher welfare levels, ensuring that all individuals, including those with disabilities, contribute to economic activities is vital. The participation of people with disabilities (PwD) in the labor force is often hindered by a persistent wage gap compared to people without disabilities (Pw/oD). This paper explores how higher education can play a crucial role in bridging this gap by maximizing the potential of individuals with special needs and facilitating smoother transitions into the labor market. Employment Transition and Its Costs Employment transition refers to the process of moving from one type of employment to another—whether it's entering the workforce, changing careers, or transitioning from unemploymen...

  MOJOK.CO – Orang miskin punya seribu satu cara untuk bertahan hidup. Salah satunya dengan muslihat  telur dadar yang membuat saya kagum ketika masih bocah.    Ketika kecil dulu, mungkin sekitar tahun 2000, saya pernah bermain ke rumah teman saya. Sebut saja namanya Wawan.  Rumah Wawan tidak besar dan cuma memiliki 2 kamar tidur serta 1 kamar mandi. Walau deskripsinya mirip dengan tipe rumah kebanyakan yang dijual developer properti di daerah pinggiran Jakarta, percayalah, konsep minimalis yang diterapkan sangat berbeda. Kalau rumah minimalis dikonsep agar menjadi sederhana, fungsional, dan terkesan mewah. Nah, rumah teman saya ini konsepnya adalah “yang penting punya rumah”.  Pencahayaan buruk. Lantai rumahnya nir-keramik, full semen ekspose ala industrialis. Udaranya lembab dan berbau apak. Cat dinding rumah Wawan sudah kusam, belum lagi dapurnya yang kecil cuma muat 3 orang bila mau berdesak-desakan. Dan di dapur ini, saya melihat sendiri muslihat telur...

We are grateful that our paper titled "Is There Any Correlation Between Poverty, Income Inequality, and Environmental Degradation in Low-Income Countries?" authored with Rosmaiza Abdul Ghani (Faculty of Business and Management, Universiti Teknologi MARA Malacca Branch, Malacca, Malaysia) and Nur Azwani Mohamad Azmin (Faculty of Business and Management, Universiti Teknologi MARA Terengganu Branch, Terengganu, Malaysia) was selected as Best Paper in the International conference of Economics Business and Economics Education Science (ICE-BEES-24). The conference was held in Semarang, Indonesia on 12-13 June 2024. Abstract Comprehensive and integrated solutions that address economic, social, and environmental factors are imperative to effectively tackle the complex interrelation between poverty, income inequality, and environmental degradation in low-income countries. To break the cycle of degradation and improve the well-being of vulnerable communities, efforts to alleviate pover...

Publikasi Badan Pusat Statisik (BPS) menunjukkan penurunan Indeks Harga Konsumen (IHK) selama lima bulan di tahun 2024. Penurunan IHK ini menunjukkan kondisi deflasi, yakni penurunan tingkat harga umum barang dan jasa secara terus-menerus dalam suatu periode tertentu. Data IHK 150 Kabupaten/Kota (2022=100) menunjukkan IHK naik dari 105,19 di Januari 2024 menjadi 105,58 di Februari, 106,13 di Maret, 106,40 di April.  Kemudian IHK turun menjadi 106,37 di bulan Mei 2024, 106,28 di Juni, 106,09 di Juli, 106,06 di bulan Agustus, dan 105,93 di bulan September.  Saat harga-harga turun, masyarakat seharusnya akan terbantu dalam mengatasi pengeluarannya. Namun produsen justru akan berhadapan dengan harga-harga yang terus turun yang berpotensi menggerus pendapatan mereka. Penurunan harga ini disebabkan oleh dua hal, yakni penurunan penawaran ( supply ) dan penurunan permintaan ( demand ).  Supply barang yang semakin sedikit akan mendorong kenaikan harga barang. Namun saat sup...

Robustness check seringkali menjadi upaya justifikasi peneliti bahwa model dan pemilihan variabel di penelitiannya adalah secara struktural valid. Namun, sebaliknya, bila robustness check tidak dilaksanakan dengan baik, ia akan menjadi tidak informatif dan bisa jadi membawa persepsi yang keliru.  Satu artikel lama namun masih relevan membahas bagaimana core dan non-critical core variables dapat diuji untuk mendukung robustness check.  White, H. & Lu, X. (2010) Robustness Checks and Robustness Tests in Applied Economics. https://www.economics.uci.edu/files/docs/micro/s11/white.pdf

We are thrilled to announce that our article titled "An Application of the Dagum Type III Model to Measure Household Net Wealth Inequality in Indonesia" authored with Susan Olivia and Les Oxley (the University of Waikato, New Zealand) is published at the Journal of Econometric Methods Vol. 13 No. 2.  Abstract :  This paper applies the Dagum Type III model to measure household net wealth inequality in Indonesia utilising data from the Indonesian Family Life Survey (IFLS) 1993–2014. The results are the distribution of household net wealth in Indonesia is right-skewed, with long-and sparse-hand tails that reflect a large proportion of households that have very low net wealth and a small proportion of households that have very high net wealth. Further, the inequality of household net wealth in Indonesia declined, as shown by the decrease in the Gini coefficient. Keywords: household net wealth; negative values; Dagum Type III JEL Classification: C14; C55; D63; I31 How to cite: Sos...

Keterbatasan informasi tentang pengelolaan keuangan rumah tangga dapat memperburuk kondisi ekonomi masyarakat, bahkan mendorong mereka ke dalam jurang deprivasi yang lebih dalam. Akibatnya, mereka akan mengalami kesulitan untuk meningkatkan taraf hidup serta kehilangan peluang dan modal untuk bermigrasi ke daerah lain, yang umumnya memerlukan persiapan finansial dan akses informasi yang memadai. Fakultas Ekonomi dan Bisnis Universitas Negeri Malang bekerjasama dengan Pemerintah Desa Srigonco, Kabupaten Malang melaksanakan program pengabdian kepada masyarakat untuk meningkatkan literasi keuangan masyarakat Desa Srigonco.  Pelaksana pengabdian masyarakat yang terdiri dari Thomas Soseco, S.E., M.Sc., Ph.D (ketua) serta anggota Febry Wijayanti, S.E., M.E., Ph.D., Lustina Fajar Pratiwi, S.E., M.Ec.Dev., Dr. Inayati Nuraini Dwi Putri, S.Si., M.Sc dan dengan mahasiswa Fajar Firmansyah  dan Tania Putri Fanisa.  Dengan peningkatan pengetahuan ini, masyarakat diharapkan dapat menge...

We are grateful that our publication titled "The Determinants of Household Net Wealth in Indonesia: Application of Quantile Regression" authored with Susan Olivia and Les Oxley (the University of Waikato, New Zealand) is published at the Journal of Southeast Asian Economies Vol. 41, No. 2 (2024), pp. 152–78 Abstract Estimation of the determinants of household net wealth that consider heterogeneity across income classes using only average values can lead to faulty interpretations. This paper controls for such variation in classes in relation to efforts to increase household wealth by applying quantile regression using Indonesian household data. For this purpose, the study uses the Indonesian Family Life Survey, using five waves of the survey from 1993 to 2014. Empirical findings show that heterogeneity in household characteristics across classes can influence wealth, with major differences between urban and rural households. Some significant contributors include household size...

In modern economies, innovation is a critical driver of economic growth and societal well-being. The capacity of an innovation-driven economy to enhance household resilience, particularly in the face of economic shocks, is essential for equitable prosperity. This study investigates the determinants necessary for households to better withstand and recover from economic disruptions, highlighting the importance of inclusive economic strategies. The Role of Innovation Innovation is fundamental to rising living standards. Productivity growth, which is vital for increasing real wages and per capita income, largely stems from continuous innovation. The McKinsey Global Institute and Boston Consulting Group emphasize that innovation surpasses other inputs, such as capital and labor, in driving productivity growth. Harvard economist Elhanan Helpman also supports this view, noting that innovation is a significant driver of productivity and, consequently, cross-country income variations. An innova...

We are thrilled to announce that our book chapter titled "Indonesia’s Path to Sustainability: Exploring the Intersections of Ecological Footprint, Technology, Global Trade, Financial Development, and Renewable Energy" has been published by Springer.  This chapter is authored by Asif Raihan, Liton Chandra Voumik, Mohammad Ridwan, Salma Akter, Abdul Rahim Ridzuan, Wahjoedi, Thomas Soseco, and Nor Asmat Ismail Abstract Understanding the complex relationship between socio-economic factors and environmental sustainability is crucial in devising effective strategies for sustainable development goals. This study analyses the impact of renewable energy use, economic growth, financial development, trade globalisation, and technological innovations on Indonesia’s ecological footprint from 1990 to 2020. Using the autoregressive distributed lag (ARDL) approach and other estimators, the study examined the short- and long-term correlations between the environmental footprint and related fa...

Finally published! Our paper titled Interprovincial Wealth Inequality by Factor Components in Indonesia in collaboration with Susan Olivia and Les Oxley (the University of Waikato, New Zealand) is finally published at the Bulletin of Indonesian Economic Studies (BIES) Volume 60, 2024 - Issue 2 The Bulletin of Indonesian Economic Studies (BIES) is the leading journal on Indonesia’s economy and society. It aims to address not only economic analysis and policy but also the intersection between economics, development, and area studies. In doing so, it plays an important role in helping the world—including Indonesians themselves—to better understand Indonesia. BIES has been published continuously since 1965. Bulletin of Indonesian Economic Studies (BIES) is published by Indonesia Project, Arndt-Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, The Australian National University To cite this article: Soseco, T., Olivia, S., & Oxley, L...

This video is from World Bank Middle-income countries are in a race against time. Since the 1990s, many of them have done well enough to escape low-income levels and eradicate extreme poverty, leading to the general perception that the last three decades have been great for development.  But this is because of abysmally low expectations—remnants from a period when more than two-thirds of the world lived on less than a dollar a day.  So what can middle-income countries do to tackle poverty and, climate change and elevate themselves into the higher-income bracket?  Meet Somik Lall, Director of the latest World Bank Group World Development Report.

Edisi the Economist (11/07) berfokus pada kualitas sumber daya manusia. Salah satu alat ukur kualitas sumber daya manusia adalah kecerdasan atau  intelligence quotient (IQ). Angka IQ yang tinggi berarti manusia tersebut lebih berkualitas bila dibandingkan dengan orang yang memiliki IQ lebih rendah. Publikasi World Population Review menunjukkan pada tahun 2017, Indonesia memiliki rata-rata IQ sebesar 78,49. Posisi Indonesia lebih rendah dibandingkan negara-negara tetangga seperti Singapura dengan rata-rata IQ 105,89, Kamboja (99,75), Thailand (88,87), dan Malaysia (87,58). Rata-rata IQ Indonesia kurang lebih setara seperti Oman (78,7) , Kuwait (78,64), Papua Nugini (78,49) dan Ekuador (78,26).  Pemilik rata-rata IQ tertinggi di dunia adalah Jepang dengan IQ 107,48. Peringkat kedua adalah Taiwan dengan rata-rata IQ 106,47 kemudian Singapura di posisi ketiga dengan rata-rata IQ 105,89. Posisi berikutnya adalah Hong Kong (105,37), China (104,1), Korea Selatan (102,35), Belarusia (...

We are delighted that our paper titled Do Multifinance Institutions Matter for Poverty Reduction? Evidence from Indonesia in collaboration with Ni Kadek Laksmi is published at Jurnal Ekonomi Pembangunan - SINTA 2.   Abstract Microfinance Institutions (MFIs) can help reduce poverty  by offering small loans to people who cannot get bank loans due to lack of collateral. However, in Indonesia, access to microfinance institutions is unequally distributed, as shown by the establishment of MFIs in Indonesia, which covers only 22 out of 34 provinces. This condition limits their impact on poverty reduction. This study examines how access to MFIs and the loans they provide affect poverty rates in Indonesia, using cross-sectional data from 22 provinces between 2016 and 2022. The results show that access to MFIs and the loans they provide do not significantly reduce poverty. This is due to poor infrastructure, low-quality MFI services, and insufficient loan amounts. The  study...

Judi online menjadi bahasan penting masa kini karena banyaknya efek samping yang muncul. Beberapa bahaya judi online seperti terlibat pinjaman online, kasus perceraian, sampai kematian tak wajar. Upaya pemerintah memberantas judi online harus didukung oleh masyarakat untuk mengurangi intensitas judi. Masyarakat harus mengetahui beberapa alasan kenapa judi harus dihindari. Tiga Karakteristik Judi Sehingga Ia Harus Dihindari Pertama , judi bersifat candu yang membuat orang ketagihan dan berusaha untuk tidak berhenti berjudi. Sifat candu ini juga berarti konsumen tidak bisa berhenti sewaktu-waktu.  Konsumen akan terus berusaha mendapatkan uang untuk modal berjudi meski harus menggunakan uang yang sejatinya dialokasikan untuk kebutuhan sehari-hari. Atau bahkan melakukan tindakan melawan hukum untuk mendapatkan modal berjudi. Di sisi lain, tidak ada upaya dari produsen untuk menghentikan sifat candu ini.  Di pembahasan di bawah kita akan melihat bagaimana unsur psikologis seseorang...

We are delighted that our paper titled Access to Technology to Increase Food Resilience in Rural Households in Indonesia is published at Economia Agro-Alimentare Food Economy. This work is in collaboration with Isnawati Hidayah, Nila Cahayati, and Fajar Try Leksono. Abstract Food resilience is intricately linked to household standard of living, human development, and economic growth. Higher food expenditure not only signifies improved living standards but also provides households with the necessary energy and nutrition for daily activities. The integration of technology holds promise for bolstering food resilience among households. However, there exists a gap in understanding how technology can enhance household food resilience across different socioeconomic classes, considering the diverse food expenditure patterns observed. This paper employs quantile regressions to examine the impact of technology on food resilience, accounting for heterogeneity across socio-economic classes. Utiliz...

Why are a distribution's moments called "moments"? How does the equation for a moment capture the shape of a distribution? Why do we typically only study four moments? I found one useful blog discussing moments that is https://gregorygundersen.com/ In short moments describe how the probability mass of a random variable is distributed.  The zeroth moment, total mass, quantifies the fact that all distribution’s have a total mass of one.  The first moment, the mean, specifies the distribution’s location, shifting the center of mass left or right. The second moment, variance, specifies the scale or spread; loosely speaking, flatter or more spread out distributions are “more random”.  The third moment, skewness, quantifies the relative size of the two tails of a distribution; the sign indicates which tail is bigger and the magnitude indicates by how much.  The fourth moment, kurtosis, captures the absolute size of the two tails.  Higher standardized moments simply re...

Tetsuya Ishida, Gripe, 1996 Tetsuya Ishida (1973-2005) adalah pelukis surealis Jepang yang menangkap kegelisahan dan trauma anak muda Jepang yang mencapai usia dewasa pada tahun 1990-an, selama Dekade Hilang ( Lost Decade ) di negara tersebut.  Pada tahun 1991, gelembung ( bubble ) ekonomi Jepang meledak, mengakhiri periode pertumbuhan ekonomi pesat yang dimulai setelah Perang Dunia II. Hal ini ditandai dengan tingkat pengangguran naik tiga kali lipat, banyak kaum muda tidak dapat memperoleh pekerjaan penuh waktu dan harus beralih ke pekerjaan kasual dan bergaji rendah, atau tidak bekerja sama sekali.  Berbagai lukisannya menggambarkan situasi anak muda Jepang yang menarik diri dari kehidupan sosial, yang dikenal dengan hikikomori . Banyak dari mereka adalah pengangguran, laki-laki, tidak pernah keluar dari kamar, dan bergantung sepenuhnya pada orang tua. Di berbagai lukisan, Ishida menggambarkan mereka berada dalam kondisi inferior namun dilengkapi dengan kecanggihan teknolog...