Contribution and efficiency of labor allocation analysis of income in household industry using raw material of agricultural commodity in South Sulawesi

• Published in: IOP conference series. Earth and environmental science 2018-05, Vol.157 (1), p.12064
• Main Authors: Tenriawaru, A N, Mahyuddin, Jamil, M H, Fudjaja, L, Nurbaya, S
• Format: Article
• Language: English
• Subjects: Agricultural commodities; Agricultural economics; Commodities; Cost analysis; Efficiency; Family income; Income; Regional development
• ISSN: 1755-1307; 1755-1315
• DOI: 10.1088/1755-1315/157/1/012064

In South Sulawesi, various home industry businesses have grown. This industry is actually the basis of community livelihoods that need to be developed and nurtured by the government so family income get increased and the absorption of workers will improve the regional economy in general. The purpose of this study is to analyse the contribution of income, and efficiency of labour allocation in household industries made from raw agricultural commodities. The method of determining the respondents is done by direct appointment (purposive) on the industry players made from raw agricultural commodities. The type of research is quantitative descriptive and data are analysed using income analysis, cost analysis, income contribution analysis, Working Day (HOK) analysis and efficiency analysis of labour allocation. The results showed that the average income earned per year ranged from IDR. 16,866,867.- up to IDR. 125,271,500.-. There are 2 industries that have high contribution to family income such as banana chips industry and rice milling industry with value of 96.3% and 68.7% respectively. In the meantime, there are 5 industries with high average labour allocation efficiency of IDR. 218,135.- / HOK per day and above the efficiency standard of labour allocation based on UMR in South Sulawesi Province.