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Journal : Nomico

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The Effect of Job Insecurity and Minimum Wage on Labor Productivity in the Formal Sector Sesario, Revi
Nomico Vol. 3 No. 2 (2026): Nomico-March
Publisher : PT. Anagata Sembagi Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62872/bn1cf142

Abstract

Labor productivity is a key driver of economic growth, yet Indonesia continues to face structural challenges related to wage policy and employment stability. This study aims to analyze the effect of minimum wage and job insecurity on labor productivity in Indonesia’s formal sector. Using a quantitative explanatory approach, the study combines secondary provincial data with primary survey data measuring perceived job insecurity. Multiple linear regression analysis, including an interaction term, is applied to examine both direct and moderating effects. The results show that minimum wage has a positive and significant effect on labor productivity, while job insecurity has a negative effect. Furthermore, job insecurity weakens the positive relationship between minimum wage and productivity, indicating that employment instability reduces the effectiveness of wage policy. These findings highlight that productivity outcomes are influenced not only by economic factors but also by employment conditions and institutional quality. The study concludes that minimum wage policy can enhance productivity when supported by stable employment conditions and effective regulatory enforcement. Without employment security, wage increases may produce limited or inconsistent productivity gains. Therefore, an integrated policy approach that combines wage regulation, employment protection, and institutional strengthening is essential to achieve sustainable productivity growth in Indonesia’s formal sector.
Toward a New Model of Economic Growth: Synthesizing Stability, Innovation, and Equity Sesario, Revi
Nomico Vol. 3 No. 2 (2026): Nomico-March
Publisher : PT. Anagata Sembagi Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62872/ev7tjr76

Abstract

Economic growth has long been regarded as a central objective of development policy, yet conventional growth models that emphasize capital accumulation and labor expansion increasingly face criticism for their inability to address environmental degradation, economic inequality, and structural transformation in modern economies. These limitations highlight the need for a new economic growth framework that integrates innovation, institutional stability, inclusiveness, and sustainability. This study aims to analyze the conceptual foundations of a new growth model that synthesizes these dimensions to support balanced and resilient economic development. The research employs a qualitative approach based on a systematic literature review of accredited academic journals and relevant scholarly publications. Data were collected from recent empirical and theoretical studies related to economic growth, financial inclusion, innovation, and sustainable development, and analyzed using qualitative content analysis and conceptual synthesis techniques. The findings indicate that innovation, particularly through digital technology and financial innovation, significantly enhances productivity and supports sectoral transformation. Institutional stability and effective governance strengthen the long-term impact of innovation on economic development, while inclusive financial systems expand access to economic opportunities and reduce inequality. Furthermore, sustainability-oriented policies are essential to ensure that economic growth remains environmentally responsible. In conclusion, a multidimensional growth model that integrates innovation, stability, inclusiveness, and sustainability provides a more comprehensive framework for achieving equitable and sustainable economic development.
Co-Authors ,, Ichsan Achmad, Dwi Isyana Aditya Wardhana Aftiana, Karmila Alfiana Alfiana Andi Kurniawan Anggita Permata Yakup Anjarwati, Sri Antari, Ni Luh Sili Anwar, Misbahul Arief, Ilham Aslichah, Aslichah Bando, Nurjannah Bara Zaretta Cici, Cici Dodi Iskandar, Dodi Eko Wahyu Hidayat, Eko Wahyu Elia, Elia Fakhrudin, Jaini Faradina, Anggia Febtysiana, Nur Fajar Gugat, Rudy Max Damara Hendy Tannady Hernawan, Moch Arif Hillary, Janne Ichsan Ichsan Janne Hillary Judijanto, Loso Khuan, Hendri Klemens Mere Lamria Mangunsong Lidia Chronika Marjani, Adi Muflihah Ramadhia MUHAMMAD ALI Nurdiani, Tanti Widia Nuryana, Arief Raden Rara Ayu Widaningsih RADIANSAH, DODY Rahma Wahdiniwaty Raraga, Filus Saleha, Sahriani Sari, Ade Risna Sugeng Karyadi suryawan, ryan firdiansyah Susilo, Muhammad Syamsu Rijal Th. Candra Wasis Agung Sutignya Wasis, Th. Candra Wasis, Th. Chandra Yulistina Yulistina