The Role of Digital Literacy in Reducing NEET Rates in the Digital Economy Era: An Empirical Study in Central Java Province Sri Subanti(a), Arif Rahman Hakim(b), Dewi Ayu Prastiwi(c), Titin Srimartini(d)
(a) Department of Statistics, Universitas Sebelas Maret, Surakarta, Indonesia
*sri_subanti[at]yahoo.co.id
(b) Department of Economics, Universitas Airlangga, Surabaya, Indonesia
(c) Department of Statistics, Universitas Sebelas Maret, Surakarta, Indonesia
(d) Universitas Sebelas Maret, Surakarta, Indonesia
Abstract
The phenomenon of NEET (Not in Employment, Education, or Training) presents a serious challenge to human capital development, especially in the digital economy era which demands high levels of technological competence and digital literacy. This study aims to analyze the role of digital literacy in reducing NEET rates in Central Java Province during the 2021-2023 period. The research adopts a quantitative approach using panel data regression to measure the influence of digital literacy variables on the percentage of NEET youth across districts and cities in Central Java. The study utilizes secondary data sourced from the Central Bureau of Statistics (BPS), the National Socio-Economic Survey (Susenas), and reports from the Ministry of communication and Informatics regarding regional digital literacy indices. The dependent variable is the percentage of the population aged 15-24 categorized as NEET, while the main independent variable is the digital literacy index. Control variables include the open unemployment rate, labor force participation rate, and the Human Development Index (HDI). The fixed effect model estimation results indicate that digital literacy has a negative and significant effect on NEET rates. This implies that improvements in digital literacy in a region are correlated with a reduction in the number of youth who are not working, not attending school, and not participating in training. Control variables such as the unemployment rate and HDI also show significant effects, indicating that economic conditions and human development levels play a role in determining NEET rates. The study recommends strengthening inclusive digital literacy programs, particularly for vulnerable groups and youth in regions with high NEET levels. Local governments are encouraged to collaborate with the education sector, vocational training institutions, and the business community to create a sustainable digital learning ecosystem that is adaptive to the dynamics of the digital economy.
Keywords: NEET, Digital Literacy, Digital Economy, Panel Data Regression, Central Java
