The Effect of Education, Regional Minimum Wages and Population Density on Labor Absorption in Indonesia Year (2015-2019)
Journal: International Journal of Arts and Social Science (Vol.5, No. 6)Publication Date: 2022-06-30
Authors : SUTRISNO;
Page : 06-228
Keywords : Employment; Education; Regional Minimum Wage; and Population Density;
Abstract
Absorption of labor that is less than optimal is one of the causes of the high unemployment rate which is one of the biggest problems in all countries in the world. Indonesia is one of the developing countries in which economic development requires a quality workforce. This research technique uses a quantitative approach with time series data types. The variables in this research are four independent variables, namely Education, Regional Minimum Wage and Population Density, the independent or dependent variable is Labor Absorption. The data source used this time is data that is still available and published by the Central Statistics Agency of East Java Province. The data analysis technique in this research is using multiple linear regression analysis with the tool used is E-Views. The independent variable simultaneously has a significant effect on Employment Opportunities in Indonesia. The F-statistic probability of 0.0004 is less than 0.05. Partially, the Education variable has a negative and significant effect on employment opportunities in Indonesia based on the education variable coefficient value -0.002308 with probability less than 0.05. Regional Minimum Wage variable with coefficient value -1.01E-05 and Population Density with coefficient value 0.028155 is not significant. With a probability value of the Regional Minimum Wage of 0.9103 and a probability value of 0.8368, it is greater than 0.05.
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