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All Journal Jurnal Paradigma Ekonomika Religio : Jurnal Studi Agama-agama Jurnal Ilmiah Universitas Batanghari Jambi JBMP (Jurnal Bisnis, Manajemen dan Perbankan) JURNAL MUQODDIMAH : Jurnal Ilmu Sosial, Politik dan Hummaniora J-MAS (Jurnal Manajemen dan Sains) Aplikasia: Jurnal Aplikasi Ilmu-Ilmu Agama Develop Jurnal Ilmiah Edunomika (JIE) Jurnal Samudra Ekonomika Jurnal Pengabdian kepada Masyarakat Jurnal Development Jurnal Prajaiswara Journal of Business Studies and Management Review International Journal of Economics, Business and Innovation Research Jurnal Abdimas UM Jambi Jurnal Ekonomi dan Bisnis Nomico Journal of Islamic Economy
Adi Putra
Universitas Muhammadiyah Jambi
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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.
Co-Authors Abdul Haris Abdul, Wahid Affriza, Muhammad Afriwan, Afriwan Agesha Marsyaf Agrien S Putra Agus Santoso Ahmad Muqorrobin Al Munawaroh, Azizah Ali Fahmi Amrizal Amrizal Anggi Lieansyah Ardi Afrizal Armiwita, Armiwita Arniwita, Arniwita Asrini Asrini Aulia Rahma Kusumaningtyas Bansa, Yorina An'guna Dani Darmawan Dani, Rian Daniel, Prima Audia Deca Veronica Deka Veronica Deka Veronica Deka, Deka Veronica Dimas Alfandi Dj, Arifhan Ady Edward Edward Fahmi Muharomi Dzikri Fahmi, Ali Faradilla Herlin Gunawan Budi Susilo Hario Tamtomo Hartoyo Hartoyo Hasan Basri Hasan Basri Hasan Basri Hasan Basri Heri Ardian Indria Mayesti Irmanelly, Irmanelly Irsyad Kamal Kurniasih, Endah Tri Laura, Laura Vantania Safitri Mainita, Mainita Mudinillah, Adam Muhammad AlFajri Muhammad Fajri Muhammad Sigit Darmawan Mukhlis Mukhlis Nadiva Freya Danella Nafa Elifah Khairunnisa Nani Suryani Naufal al-Haq Nedawati, Rika Neldawaty, Rika Nisrina Indy Saqifa Nurdin Nurdin Nurdin Nurdin Nurdin Nurdin Nurkodri, Moh Sahroni Pasla, Bambang Niko Prima Audia Daniel Putra, Iwan Eka R. Rully Mahendra Rahayu Elisa N Ratih Rosita Rian Dani Rio Lesmana Rafar Sari, Candra Ovita Septa Pratama Siswoyo Siswoyo Suherman, Suherman Sunandar Sunandar Veronica, Deka Veronika, Deka Yolanda, Dela Yunie Rahayu Yunie Rahayu