The Influence Of Integrity And Human Resource Empowerment On The Economic Welfare Of Traditional Gold Miners In South Sulawesi, Through Work Productivity As An Intervening Variable

Abstract

This study analyzes the influence of integrity and empowerment of human resources (HR) on the economic welfare of traditional gold miners in South Sulawesi, with work productivity as an intervening variable. A total of 100 respondents who were directly involved in gold mining activities in Luwu, Enrekang, and surrounding districts became a research sample. Data were obtained through questionnaires and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). Study results show that integrity has a positive and significant effect on economic welfare, both directly and through work productivity as a mediator. Human resource empowerment has a positive effect on economic welfare, but it is not significant on work productivity. Meanwhile, work productivity has been proven to play an important role in improving economic welfare and mediating the relationship between integrity and welfare. These findings confirm that strengthening integrity is a key factor in increasing productivity and welfare, while empowering human resources more effectively has a direct effect on improving living standards without going through productivity. This research provides theoretical and practical contributions on the importance of integrity-based development strategies and human resource empowerment to improve the quality of life of traditional gold miners in the informal sector.