The relationship between human development, financial development, rule of law, technology, and labour income in BRICS countries
DOI:
https://doi.org/10.15611/aoe.2026.2.02Keywords:
labour income, human development, rule of law, financial developmentAbstract
Objective: This article examines the impact of the Human Development Index (HDI), the Rule of Law Index, Financial Institutions and Market Depth Index, and internet access on labour incomes in BRICS countries.
Methodology: Utilising annual panel data from 2004 to 2022, this study relied on secondary data sourced from the International Monetary Fund, ILO, UNDP, and the World Bank. The analysis used panel data regression to evaluate the relationship between these variables.
Results: The findings revealed that HDI, Rule of Law Index, Financial Development, and Internet access significantly and positively affect labour incomes in the BRICS countries. These results highlight the important role of universal access to quality education, which includes formal education and vocational training, in improving labour market outcomes.
Implications and recommendations: Strengthening the Rule of Law Index requires consistent law enforcement, worker protection, and institutional transparency, as demonstrated in South Africa. In addition, driving the growth of the Financial Institution Depth Index requires broader financial inclusion through fintech solutions, microcredit expansion, and regulatory reform. Digital transformation also plays a key role in improving accessibility and financial efficiency.
Originality/value: This research supports several Sustainable Development Goals (SDGs) achievements. The latest outcome empirically links SDGs indicators with certain institutional and technological variables in influencing labour income. While many previous studies focused on other groups of developed or developing countries, this study analysed ten BRICS member countries.
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Copyright (c) 2026 Ariodillah Hidayat, Suhel, Muhammad Subardin, Apriansyah Putra, Muhammad Teguh, Xenaneira Shodrokova
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Accepted 2026-01-19
Published 2026-08-20
