The Effects of Wages, Economic Growth, and Number of Companies in Industrial Sector on Unemployment
Ade Mulya Pratomo and Andryan Setyadharma
Faculty of Economics Universitas Negeri Semarang
Abstract
The purpose of this study was to determine the effects of minimum wages, economic growth, and number of companies in industrial sector on unemployment in West Java. the number of companies in industrial sector variable acts as moderator variable. The method of data analysis in this study uses Panel Data Regression. The type of data used is secondary data obtained from Badan Pusat Statistik (BPS) in 2013-2015 with 26 districts / cities in West Java. The results showed that the minimum wage had a positive and significant effect, economic growth had a positive but not significant effect, and the industry had a positive and significant effect. Moderating variable makes the influence of minimum wages and economic growth have a negative and significant effects. The addition of moderation variable is proven to strengthen the influence of independent variables on the dependent variable. Suggestion: 1) the government must continue to regulate appropriate regulations so that an increase in the number of industries can be accompanied by an increase in employment opportunities. Economic growth will be better if it is able to provide employment opportunities; 2) Increasing number of industries is better when accompanied by increased employment opportunities. The labor force is encouraged to improve their skills to meet the criteria needed by the industry.
Keywords: unemployment, minimum wages, economic growth
Topic: Economics