The Effect of Minimum Wage on Employment Opportunity with Quality of Human Resources as Moderating Variables in Central Java
The purpose of this study was to analyze the effect of the influence between the minimum wage and employment opportunities and the quality of human resources as a moderation variable. This study uses secondary data obtained from the Central Bureau Statistics (BPS). In this study, the data collected is panel data consisting of ten regencies/cities with the highest LFPR levels and ten regencies/cities with the lowest LFPR levels in Central Java Province within a span of 5 years, starting from 2016 – 2020. This research uses a quantitative approach by converting the results of all observations into numerical which is then analyzed through statistics. Based on the effect of research and data analysis using t-tests showed that: (1) There is the influence of GRDP on LFPR of Central Java Province, (2) There is an Effect of Minimum Wage on LFPR of Central Java Province, (3) There is no quality of human resources influence on LFPR central Java Province, (4) there is an influence of GRDP moderated by quality of human resources on LFPR of Central Java Province, and (5) and there is no effect of minimum wage moderated by quality of human resources on LFPR Central Java Province.
- Research Article
30
- 10.2307/2524979
- Apr 1, 1994
- Industrial and Labor Relations Review
We re-examine the evidence presented by Neumark and Wascher (1992) on the employment effect of the minimum wage. We find three critical flaws in their analysis. First, the school enrollment variable that plays a pivotal role in their specifications is derived on the false assumption that teenagers either work or attend school. Measurement error biases contaminate all the empirical estimates that use this enrollment variable. Second, Neumark and Wascher measure the effect of the minimum wage by a coverage-weighted relative minimum wage index. This variable is negatively correlated with average teenage wages. Taken literally, their results show that a rise in the coverage-weighted relative minimum wage lowers teenage wages. Examining the direct effects of state-specific minimum wages, we find that increases in state minimum wages raise average teenage wages but have essentially no employment effects. Finally, a careful analysis of Neumark and Wascher's data shows that subminimum wage provisions are rarely used. This casts doubt on their claim that subminimum provisions blunt any disemployment effect of the minimum wage. Neumark and Wascher contend that other minimum wage studies are biased by failing to control for school enrollment, and by failing to consider the lagged effects of minimum wages. We re-analyze the experiences of individual states following the April 1990 increase in the Federal minimum wage, allowing for a full year lag in the effect of the law and controlling for changes in (properly measured) enrollment rates. Contrary to their claims, allowing for lagged effects and controlling for enrollment status actually strengthens the conclusion that the 1990 increase in the Federal minimum had no adverse employment effect.
- Research Article
- 10.14710/agrisocionomics.v9i3.26195
- Nov 10, 2025
- Agrisocionomics: Jurnal Sosial Ekonomi Pertanian
The implementation of government policies that align with the need to increase dairy productivity in Indonesia is crucial. Ensuring policy compatibility with the dairy sector's needs requires setting priorities through a direct, participatory, and bottom-up approach involving dairy sector stakeholders. This study aims to identify priority development programs for dairy farming businesses within the framework of government policies that align with the real needs of dairy sector stakeholders. A quantitative approach was used, employing the Analytical Hierarchy Process (AHP) pairwise comparison method. Dairy productivity was set as the main goal, assessed through three key criteria: capital, dairy farming infrastructure, and the quality of human resources. The evaluated alternatives included the use of information technology, livestock seed grants, mentoring, institutional support, government policies, and supply chain improvements. Data were collected via questionnaires from seven key informants representing dairy farmers, policymakers from the Department of Agriculture, Food, and Fisheries, Sleman Regency, non-governmental organizations (NGOs), dairy farmer associations, academics, researchers, and the dairy processing industry. The research was conducted in the Special Region of Yogyakarta and Central Java Province in August 2024. The findings indicate that mentoring is the most prioritized government policy program among dairy farmers, with a relative weight of 0.242. Additionally, the quality of human resources emerged as the most critical criterion for dairy sector stakeholders, with a relative weight of 1.000. These results highlight that improving the quality and education level of human resources in the dairy sector is a key factor in enhancing dairy productivity. The findings suggest that government programs should focus more on long term, farmer centered mentoring strategies, supported by consistent policy implementation, qualified facilitators, and collaboration with cooperatives and educational institutions to ensure sustainable dairy sector development.
- Research Article
5
- 10.31002/dinamic.v1i2.519
- Jul 1, 2019
- DINAMIC : Directory Journal of Economic
T his study aims to determine: (1) the effect of provincial minimum wages on employment in Central Java Province in 2007-2017, (2) the effect of investment on employment in Central Java Province in 2007-2017, (3) the effect of minimum wages province, investment in employment in Central Java Province 2007-2017. The method of data analysis uses the Classical Assumption Test, Multiple Linear Regression Analysis, Statistical Test consisting of statistical t test, statistical F test, and Determination Coefficient Test (R2). The results of the study indicate: (1) there is a positive and meaningful influence of the provincial minimum wage on employment in Central Java Province in 2007-2017, (2) there is a positive and meaningful influence of investment in employment absorption in Central Java Province in 2007- 2017, (3) there is a significant and significant effect of provincial minimum wages, joint investment in employment in Central Java Province 2007-2017.
- Research Article
4
- 10.58878/sutasoma.v1i1.179
- Dec 22, 2022
- Jurnal Sutasoma
The significant increase in the number of poor and unemployed people in the Province of Bali over the past two years as part of the impact of the Covid-19 pandemic which hit the joints of the economy has become a new problem that deserves further handling. This research is focused on discussing the causes of poverty by focusing on the employment aspect which includes wages and unemployment, as well as the educational aspect which is represented by the literacy rate indicator. The research objectives in this study are: (1) to analyze the effect of minimum wages and literacy rates on unemployment in Bali Province; (2) to analyze the effect of minimum wages, literacy rates, and unemployment on poverty in Bali Province; and (3) to analyze the role of unemployment in mediating the effect of minimum wages and literacy rates on poverty in Bali Province. The approach used in this study is a quantitative approach. This study uses path analysis techniques in hypothesis testing. Secondary data were obtained from the Central Bureau of Statistics (BPS) of Bali Province, and this study combined time series data and cross sectional data or in the form of panel data. The data processing aids used were Microsoft Excel and Eviews version 10. The results showed that (1) the minimum wage and literacy rate had a positive but not significant effect on unemployment; (2) the minimum wage has a negative and insignificant effect on poverty, the literacy rate has a direct negative and significant effect on poverty, and unemployment has a direct positive and significant effect on poverty; and (3) unemployment does not mediate the effect of minimum wages and literacy rates on poverty in Bali Province.
- Research Article
2
- 10.35327/gara.v17i2.444
- Jun 1, 2023
- GANEC SWARA
The absorption of labor in the Province of Bali over the past five years has experienced quite significant fluctuations, especially during the Covid-19 pandemic, because many workers were laid off and even experienced layoffs by their companies. This is shown through employment absorption in 2020 which has decreased significantly compared to previous years. Relatively current labor absorption is often associated with economic growth. The higher the level of economic growth in an area, the lower the unemployment rate and the higher the level of employment. This research is focused on discussing the description of labor absorption and economic growth associated with the minimum wage in the Province of Bali. The research objectives in this study were to determine 1) the effect of the minimum wage on economic growth; 2) the effect of minimum wages and economic growth on employment; and 3) the role of economic growth in mediating the effect of the minimum wage on employment in the Province of Bali. The approach used in this study is a quantitative approach. This research uses secondary data obtained from the Central Bureau of Statistics (BPS) of Bali Province. Panel data was used in this study by combining time series data from 2013-2021 and cross-sectional data from nine districts/cities in Bali Province. The data processing tools used are Microsoft Excel and SmartPLS. The results of the study show that: (1) the minimum wage has a direct and significant positive effect on economic growth; (2) the minimum wage has a direct and insignificant negative effect on employment; (3) economic growth directly has a positive and insignificant effect on employment; and (4) economic growth does not mediate the effect of the minimum wage on employment.
- Research Article
- 10.58818/ijems.v3i1.94
- Jan 23, 2024
- The International Journal of Education Management and Sociology
The aim of this research is to analyze quality of human resources, wages, population growth, and the labor force on employment opportunities in West Nusa Tenggara Province either partially or simultaneously. The research method uses a quantitative approach using time series secondary data with a period of 8 years, namely 2015-2022. The dependent research variable is Job Opportunity (Y) Independent variables namely, quality of human resources (X1), wages (X2), and labor force (X3). Data collection through a documentation study, the collected data were analyzed with multiple linear regression, then tested using the T-test, namely that workforce (X3) have no significant effect on Job Opportunities. Meanwhile, the variables Quality of Human Resources (X2) and Wages (X3) have a significant effect on Job Opportunities in Banten Province. while the F-test simultaneously shows that Quality of Human Resources, Wages, the labor force have a significant effect on Employment Opportunities in the Province of Banten. This conclusion has shown that employment opportunities, and the impact of i fluctuations are caused by a slowdown in the export sector, and also a slowdown in investment growth. Labor force growth does not affect employment opportunities. Because the increase in population is not balanced with infrastructure, and investment.
- Research Article
- 10.21776/csefb.2022.01.2.02
- Oct 20, 2022
- Contemporary Studies in Economic, Finance and Banking
The number of the workforce that is not proportional to the availability of jobs can lead to unemployment. In 2021, Central Java Province already has a dominant workforce from the total population so that it is vulnerable to unemployment. This research aims to analyze the effect of MSMEs, Investment and Minimum Wage on the unemployment rate in Central Java Province in 2008-2021. The method used in this study is quantitative analysis and used secondary data obtained from BPS, Central Java DPMPTSP, and other. The technique of analyzing data uses multiple regression with a supported by software SPSS. The resulth of the research show that : (1) number of MSMEs, Minimum Wage and investment had a significant affect simultaneously on unemployment rate (2) number of MSMEs had a negative and significant effect on unemployment rate (3) Minimum Wage had a positive and significant effect on unemployment rate (4) investment had no effect on unemployment rate. This is due to investment in Central Java Province which is concentrated in certain sectors that lead to capital-intensive industries so that investment does not have a significant effect on TPT.
- Research Article
- 10.24843/eep.2023.v12.i07.p02
- Nov 2, 2025
- E-Jurnal Ekonomi Pembangunan Universitas Udayana
The purpose of this study is to (1) analyze the joint effects of economic growth, investment, technology and minimum wage on employment opportunities in districts/cities in Bali; (2) Analysis of partial effects of economic growth, investment, technology and minimum wage on employment opportunities in districts/cities in Bali. (3) Analyze the order of impact of economic growth, investment, technology and minimum wage on employment opportunities in districts/cities of Bali. This study is an associative quantitative study using panel data of up to 72 observations. Data sources for this study are secondary data from the Bali Provincial Central Bureau of Statistics and primary data obtained from informants through in-depth interviews. The collected data were then analyzed using several linear regression analysis techniques. Based on the analysis results, it is shown that (1) economic growth, investment, technology and minimum wage simultaneously have a great impact on employment opportunities in provinces/cities in Bali. (2) Economic growth and minimum wages can have a significant positive impact on employment opportunities in provinces/cities of Bali Province. Investments and technology may not affect employment opportunities in districts and cities in Bali. (3) Minimum wage has the greatest impact, followed by economic growth, investment and technology
- Research Article
1
- 10.15294/efficient.v6i1.55225
- Jan 22, 2023
- EFFICIENT Indonesian Journal of Development Economics
The purpose of this study was to analyze the effect of economic growth, population, minimum wage, and human development index on poverty rates in Central Java Province. This study uses quantitative methods with panel data, which is a combination of cross-section data from 35 districts/cities in the Central Java Province and time series data for the period 2015-2019. Tests in did study with the Fixed Effect Regression analysis method with the Generalized Least Square (GLS). The results showed that the variable of economic growth and human development index had a negative and significant effect, the population variable had a positive and significant effect, and while poverty rate variable had a positive and not significant effect. Suggestions from the results of this study are: (1) The Local Government should try to push the equal whole infrastructure. (2) KB (Family Plan) Program should be focused in every area of villages. (3) Every regency needs to set the value of minimum paid based on worth life’s standard. (4) Increase the level of education in every village by repairing and adding more devices that support making education better.
- Research Article
1
- 10.22437/pdpd.v4i2.6943
- Aug 20, 2015
- e-Jurnal Perspektif Ekonomi dan Pembangunan Daerah
The study aims to analyze the influence of the quality of human resources, employment opportunities and economic growth on the number of poor people in Sarolangun District. The data used in this study are secondary data, from 2002 to 2012. Data is sourced from the Central Bureau of Statistics of Jambi Province, the Sarolangun Regency Central Bureau of Statistics and the Regional Planning and Development Agency of Sarolangun Regency. The analysis tool used is a multiple linear regression method. The results showed that simultaneously the quality of human resources, employment opportunities, and economic growth had a significant effect on the number of poor people in Sarolangun District. Partially. employment and economic growth have a significant effect while the quality of human resources has no significant effect on the number of poor people
- Research Article
3
- 10.14710/jppmr.v3i4.6511
- Sep 30, 2014
- Journal of Public Policy and Management Review
Semarang City is one tourist destination in Central Java Province, which has the potential to invite many tourists to visit. One of the attractions of interest to tourists visited Semarang is Wildlife Areas (TMS). Wildlife Areas Semarang is one place in the city of Semarang tourism and wildlife conservation that combines the concept of education (learning about animals and life). The function and role of the park's wildlife is in the field of education, namely as a means of science and technology education. As well as a place for family entertainment that educates various groups. However, in the management of Wildlife Areas are still not optimal, it is shown by the low interest of tourists to visit the Wildlife Areas Semarang. The purpose of the study to describe the condition of the internal and external conditions faced by Wildlife Areas Semarang, and analyze the strategies that should be prioritized in tourism management Wildlife Areas Semarang. The results showed that the management of a tourist attraction Wildlife Areas Semarang not optimal. The cause of non-optimal management can be seen from the internal and external factors of wildlife Semarang areas covering of the lack of means of infrastructures, the quality of human resources, lack of budget and lack of tourism awareness groups. It is recommended to do for tourism management strategies Wildlife Areas Semarang, such as : Supervision of Culture and Tourism Semarang more comprehensive, attractive existence promo for visitors, Conducting coaching and persuasive approach to the community about the environment in order to grow the attitude attraction of tourism awareness and Improving the quality and quantity of human resources.
- Research Article
- 10.32424/icsema.1.1.364
- Aug 13, 2025
- The International Conference on Sustainable Economics Management and Accounting Proceeding
Own Source Revenue (OSR) is an important indicator in assessing the fiscal independence of a region. The existence of Local Original Income can be a reflection that the economy in a region is running according to its portion. On the island of Java, there is Central Java Province which has a strategic location and regencies/cities that are no less numerous than other provinces, but in reality in terms of Own Source Revenue (OSR) it is still low after Banten and the Special Region of Yogyakarta. Therefore, the purpose of this study is to analyze the effect of consumption, minimum wages, and Human Development Index (HDI) on Own Source Revenue (OSR) from 35 Regencies/Cities in Central Java Province with the period 2019-2024. The theories that support the phenomenon that occurs in Central Java Province are the theory of fiscal decentralization and the theory of endogenous growth. The method used in this study uses a quantitative method with an analysis tool, namely panel data regression. The results of the regression test in this study are that the consumption, HDI and minimum wage variables simultaneously have a significant effect on OSR. In addition, the consumption and Human Development Index (HDI) variables partially do not have a significant effect on OSR while the minimum wage variable partially has a significant positive effect. Based on the results of the study, there are implications that the government can pay more attention to the minimum wage in Central Java Province. The policy related to minimum wages in a region must continue to be considered because the resulting impact greatly affects OSR. The government can focus more on creating programs for the community, especially in the context of increasing minimum wages, investment and optimizing direct taxes.
- Research Article
11
- 10.1108/jstpm-12-2017-0068
- Nov 20, 2019
- Journal of Science and Technology Policy Management
Purpose This paper aims to examine and analyze the effects of government policy, quality of human resources and professional institutions on workforce competitiveness using welding technology variable as a mediating variable. Design/methodology/approach This study used quantitative research by using partial least square – structural equation modeling (PLS-SEM) to analyze the collected data. Findings Based on the results of the analysis, it was noted that there was a significant influence between government policy, quality of human resources and professional institutions on welding technology. The coefficients are characterized by a positive direct relationship, which means that the higher the quality of government policy and human resources professionals variables, the higher the value of the institute of welding technology. Social implications This study recommends that government should create policies that have benefits to competitiveness of Indonesian workforce. Implications from this study support government to use the model to determine and initiate policies in the field of welding as well as establish clear and standardized operating standards and recruitment process (government apparatus) that can accommodate the competitiveness of welding workers in Indonesia. Originality/value The originality of this paper is that the participatory approach was adopted in this study using PLS-SEM. In addition, this study was one of the first studies to carry out research at the BNSP office, BLK-Bandung-Jakarta, Makassar, B4T and dismiss the Ministry of Manpower and the Ministry of Industry in Jakarta, Indonesia, where there was no research in this location. Previous studies conducted research in various case studies.
- Book Chapter
- 10.7551/mitpress/9780262141024.003.0006
- Oct 31, 2008
This chapter examines the effects of minimum wages on skill formation. It begins by studying the direct effects of minimum wages on schooling, focusing both on their overall effects and on differences in the effects of minimum wages across skill groups. The chapter then turns to the effects of minimum wages on training, a topic that is relevant to individuals whose employment status is not influenced by the minimum wage, but whose terms of employment may be affected. Because the effects of minimum wages on both training and schooling may have longer-lasting consequences, the chapter also presents evidence on the longer-term effects of minimum wages on workers’ wages and earnings even after their wages have risen above the minimum wage.
- Research Article
1
- 10.46576/.v1i1.2139
- Jun 29, 2022
- Journal Economic Management and Business
This study aims to determine whether there is an influence between organizational commitment and the quality of human resources on employee performance, using descriptive and quantitative methods. The sample used is as many as 99 respondents, namely employees of the State Civil Apparatus (ASN) of the Regional Revenue Agency of Deli Serdang Regency. The results obtained are organizational commitment and the quality of human resources affect the performance of regional revenue agency employees of Deli Serdang Regency as shown from the results of multiple regression Y = 12.090 + 0.223X1 + 0.482X2 + e. With the results of the partial test (t test) of organizational commitment with a value of tcount = 1.921>1.66 and the results of the partial test (t-test) for the quality of human resources, namely tcount = 4.480>1.66, this indicates that organizational commitment and quality of resources Human resources have a positive effect on the performance of State Civil Apparatus (ASN) employees of the Regional Revenue Agency of Deli Serdang Regency. For the F test results obtained Fcount>Ftable (62,701>3,091). The value of the coefficient of determination (R2) is 0.566, which means that organizational commitment and the quality of human resources are able to improve the performance of employees of the regional revenue agency of Deli Serdang Regency, by 56.6% and the remaining 43.4% is explained by other variables outside the study.