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Journal : Journal of Regional Economics and Development

Analysis Influence Growth Economy, Level Wages Minimum and Level Education to Unemployment in Pamekasan Regency Rohani, Alya; Imaningsih, Niniek
Journal of Regional Economics and Development Vol. 3 No. 1 (2025): November
Publisher : Indonesian Journal Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47134/jred.v3i1.917

Abstract

This study aims to determine the effect of economic growth, minimum wage levels, and education levels on the unemployment rate in Pamekasan Regency in the period 2014–2023. The background of the study is based on the problem of unemployment which remains a significant issue in regional development, where high unemployment is related to fluctuations in economic growth, minimum wage policies, and low educational attainment of the community. This study uses a quantitative method with multiple linear regression analysis, while research data was obtained from the Central Statistics Agency (BPS) of Pamekasan Regency. The results show that economic growth has a negative effect on unemployment, so that economic improvement can reduce the number of unemployed. The minimum wage variable has a positive effect, which means that wage increases tend to increase unemployment due to limited labor absorption capacity. Meanwhile, the level of education has a negative and significant effect, meaning that the higher the community's education, the lower the unemployment rate. Simultaneously, all three variables are proven to have a significant effect on unemployment in Pamekasan Regency.
The Analysis of the Effect of BI Rate, Purchasing Power Index, Domestic Investment, and Labor Force Participation Rate on per Capita Expenditure in East Java Province Susanto, Doni Tri; Imaningsih, Niniek
Journal of Regional Economics and Development Vol. 3 No. 1 (2025): November
Publisher : Indonesian Journal Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47134/jred.v3i1.962

Abstract

This study aims to analyze the partial and simultaneous effects of BI Rate, Purchasing Power Index (IDB), Domestic Investment (PMDN), and Labor Force Participation Rate (LFPR) on Per Capita Expenditure in East Java Province. This study uses annual time series data for the period 2009–2013 sourced from the Central Statistics Agency (BPS) and Bank Indonesia (BI). The analytical method used is multiple linear regression with EViews 13 software. The results of the classical assumption test show that the model meets the requirements of normality, and there is no multicollinearity, heteroscedasticity, and autocorrelation. The results reveal that partially, BI Rate and the Purchasing Power Index have a positive and significant effect on per capita expenditure. Meanwhile, Domestic Investment (PMDN) and Labor Force Participation Rate (LFPR) did not show a significant effect. However, simultaneously, the four independent variables proved to have a significant effect on per capita expenditure. These findings provide policy implications that efforts to improve the welfare of the people of East Java must consider a combination of prudent monetary policy, programs to increase purchasing power, as well as more targeted and inclusive investment and employment strategies.