Does Age Economy Affect Productivity?—A Survey on Sub National of Central Java Province

As the performance of the nation’s economy is in accordance with the productivity development, every country needs to build the productive areas to provide jobs for its population. Therefore, each region should be able to identify, explore, and optimize local potencies to encourage regional economy. The aim of this study was to analyze the relationship between the age of cities-district and the productivity of the labor in 35 cities-district in Central Java Province using production function calibrated using Mincer Equation that refer to Bils and Klenow model’s. Relevant data from 2004 to 2013 were collected. Panel data with Fixed Effect Within Group Method was used to analyze the contribution of age of economy towards productivity. The result showed the age of economy remains as a one of determined factor in the creation of productivity in 35 cities-district Central Java Province.