In education sector the direct estimates of worker productivity are available for the majority of the workforce. In recent years, educational economists examine productivity returns to work experience among teachers using predicted contributions to increase student test scores as a proxy for productivity. Teacher productivity in the labor economy is measured using the education production function model. An education production function is an application of the economic concept of a production function to the field of education. It relates various inputs affecting a student's learning (schools, families, peers, neighborhoods, etc.) to measured outputs including subsequent labor market success, college attendance, graduation rates, and, most frequently, standardized test scores. This study was aimed to determine the effect of wages, level of education and training toward honorary teachers’ productivity in Palembang. The data used in this study were primary data in the form of questionnaires which were asked directly to the respondents with a total number of 310 respondents from 28 private vocational schools in Palembang. Survey was used as the data collection method with proportional random sampling withdrawal. Data analysis method used in this study was multiple regression with OLS method. The results of this study indicated that wages, education and training affect the productivity of private vocational school teachers in Palembang. The coefficient of determination for the variable of wages, education and training was 65%. It showed that wages, education, and training had 65% effects on productivity and the remaining 35% was influenced by other variables. As the research results show, the productivity was very important in measuring the success of an employee. It can be seen by paying attention to the level of wages, education and training participated by teachers in a school institution, especially in Palembang.
Harnessing complementarities in the education production function
