SIMULTANITAS TINGKAT UPAH DAN PENYERAPAN TENAGA KERJA SEKTORAL DI INDONESIA

Abstract

The increase in production is related to labor as one of the inputs followed by changes in production sector from the traditional economy (primary) to the modern economy (non-primary). In Indonesia, it showed that the increase in economic growth was not followed by labor force growth that fluctuated even be negative and the sectoral economy has changed. In addition, the government is also faced with the low level of wages received by workers. Therefore, this study aimed to examine the simultaneous connection between the sectoral wages and the absorption of sectoral labor in Indonesia using simultaneous equations panel data. The best model used is the Error Component Two Stage Least Square (EC2SLS). The result shows that there is a simultaneous connection between the sectoral wages and the absorption of sectoral labor with negative. In the primary sector, primary GRDP and UMP have significant positive effect on the wage level, besides that primary GRDP and CPI have significant positive effect on the absorption of labor. In the secondary sector, secondary GRDP and RLS have significant positive effect on the wage level, besides that secondary GRDP and CPI have significant positive effect on the absorption of labor. Finally in the tertiary sector, total GRDP, RLS, and UMP have significant positive effect on the wage level, besides that total GRDP, CPI, and tertiary PMTB have significant positive on the absorption of labor.