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THE INFLUENCE OF REGIONAL MINIMUM WAGE ON POVERTY IN JAMBI CITY: A MODERATING ROLE OF THE OPEN UNEMPLOYMENT RATE Adi Putra; Faradilla Herlin
Jurnal Development Vol. 13 No. 1 (2025): Jurnal Development
Publisher : Universitas Muhammadiyah Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53978/jd.v13i1.590

Abstract

This study aims to analyze the effect of the Regional Minimum Wage (RMW) on poverty levels in Jambi City, considering the Open Unemployment Rate (OUR) as a moderating variable. A quantitative approach was employed, using secondary data obtained from the Central Statistics Agency (BPS) of Jambi City for the period 2013–2022. Data were analyzed using simple regression and Moderated Regression Analysis (MRA) with the assistance of SPSS software. The results show that the direct effect of RMW on OUR is very low, with an R² value of 0.031, indicating that only 3.1% of the variation in unemployment is explained by RMW. However, after including inflation as a moderating variable, the R² value significantly increased to 0.727, suggesting that inflation substantially strengthens the relationship between RMW and OUR. These findings imply that minimum wage policies alone are not sufficiently effective in reducing unemployment without being complemented by other factors such as inflation control, economic growth, and workforce quality. Furthermore, the study finds that the inflation trend in Jambi City during the period was relatively stable, averaging 3.24%, despite significant fluctuations in certain years, such as 2014 and 2020. This inflation stability plays a vital role in maintaining purchasing power and labor market equilibrium. Therefore, local governments should not rely solely on raising minimum wages as a singular strategy but must also enhance vocational training programs, improve workforce skills, and create productive employment opportunities aligned with local industry demands.
Poverty Dynamics and Moderating Effects on Labor Force–Economic Growth in Tanjung Jabung Timur Asrofin, Asrofin; Putra, Adi; Nurdin, Nurdin; Nurkodri, Moh Sahroni
Jurnal Prajaiswara Vol. 7 No. 1 (2026): April 2026
Publisher : Badan Pengembangan Sumber Daya Manusia (BPSDM) Provinsi Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55351/prajaiswara.v7i1.274

Abstract

Introduction/Main Objectives: This study aims to analyze the effect of labor force and poverty on economic growth in Tanjung Jabung Timur Regency for the 2016–2025 period, and to examine the role of poverty as a moderating variable. This topic is important because regional economic growth is not always accompanied by a proportional reduction in poverty. Problem Background: The main issue addressed is the relationship between labor, poverty, and economic growth, and whether poverty strengthens or weakens the impact of labor on economic growth. Novelty: The novelty of this study lies in incorporating poverty as a moderating variable in the labor–economic growth nexus at the regional level, which remains relatively underexplored in prior studies. Research Method: This study employs a quantitative approach using time series data from 2016–2025 obtained from official regional statistics. The analytical methods include multiple linear regression and Moderated Regression Analysis (MRA) with an interaction term (X1*X2). Findings/Results: The results indicate that labor has a positive and significant effect on economic growth (β = 0.298; sig. 0.004), while poverty has a negative and significant effect (β = -0.145; sig. 0.045). The interaction term (β = -0.0021; sig. 0.027) reveals that poverty weakens the effect of labor on economic growth. Conclusion: In conclusion, increases in labor force do not optimally promote economic growth without a reduction in poverty levels. The implication is that development policies should simultaneously focus on improving labor quality and reducing poverty.
Analysis of the Effect of Education, Labor, and Population on Poverty in Jambi Province Revadila, Siti Nurani; Putra, Adi; Winarni, Etik
Jurnal Prajaiswara Vol. 7 No. 1 (2026): April 2026
Publisher : Badan Pengembangan Sumber Daya Manusia (BPSDM) Provinsi Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55351/prajaiswara.v7i1.280

Abstract

Introduction/Main Objectives: This study aims to analyze the effect of education, labor, and population on poverty levels in Jambi Province during the 2015–2025 period. Background: Poverty is a multidimensional issue influenced by various economic and social factors. Education, labor, and population are often considered key determinants affecting societal welfare and poverty dynamics in a region. Novelty: This study provides a recent empirical analysis using time-series data from 2015–2025 in Jambi Province and examines both partial and simultaneous effects of the three main variables in explaining poverty variation. Research Method: This study employs a quantitative approach using multiple linear regression analysis. Hypothesis testing is conducted using the t-test for partial effects and the F-test for simultaneous effects at a significance level of 5% (α = 0.05). Findings/Results: The results show an R² value of 0.655, indicating that 65.5% of the variation in poverty is explained by the independent variables. The correlation coefficient (R) of 0.809 indicates a strong relationship. Partially, education (-2.450; Sig. 0.633), labor (0.010; Sig. 0.889), and population (-0.078; Sig. 0.221) have no significant effect. However, simultaneously, all variables significantly influence poverty. Conclusion: Poverty in Jambi Province is influenced not only by education, labor, and population but also by other factors outside the model. Therefore, comprehensive and integrated policies are needed to effectively reduce poverty.