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The Effect Of Investment and employment on Economic Growth : Pengaruh Investasi Dan Tenaga Kerja Terhadap Pertumbuhan Ekonomi Syaqinah Ujung; Mentari Rezeki Ramadhani; Zulfa Afifah
Outline Journal of Economic Studies Vol. 2 No. 2: April - September 2023
Publisher : Outline Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61730/ojes.v2i2.108

Abstract

This study aims to determine the effect of investment and labor on economic growth. This study uses a qualitative method. In this study, researchers used a data collection method, namely library research or literature by citing several literature studies such as several articles related to problems related to economic growth. The research is descriptive in nature which tends to use analysis that focuses on in-depth observations. Based on the results discussion, the rate of economic growth and investment has a positive reciprocal relationship. This reciprocal relationship occurs because on the one hand, the higher the economic growth of a country, it means that the greater share of income that can be saved, so that the investment created will be even greater. The number of workers in Indonesia has influential results and also chooses a positive relationship with Indonesia's economic growth, with an increase in the number of people working in Indonesia it is hoped that the productivity of the workforce will increase so that this can spur economic growth in Indonesia.
The Influence of Minimum Wages and Unemployment Rates on Poverty in Indonesia for the Period 2015-2025 Muammar Rinaldi; Vivi Safira; Mentari Rezeki Ramadhani; Vingky Dwi Pratama; Zulfa Afifah
International Journal For Advanced Research Vol. 2 No. 3: October 2025
Publisher : Outline Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61730/jh2gj926

Abstract

This study aims to analyze the influence of minimum wages and unemployment rates on poverty levels in Indonesia during the period 2015–2024. Poverty remains one of the most persistent socio-economic challenges in developing countries, including Indonesia, where economic growth does not always lead to equitable welfare distribution. Minimum wage policies are expected to improve the income of low-income workers, while high unemployment rates tend to increase the number of people living below the poverty line. Therefore, understanding the interaction between these variables is essential for designing effective poverty reduction strategies. This research employs a quantitative approach using multiple linear regression analysis to examine the relationship between minimum wages, unemployment rates, and poverty levels. The study utilizes secondary data obtained from the Central Statistics Agency (Badan Pusat Statistik/BPS) covering the 2015–2024 period. Data were processed using statistical software to test both the partial and simultaneous effects of the independent variables on poverty. The results reveal that minimum wage and unemployment rate variables significantly affect poverty levels, both partially and simultaneously. However, the effect of minimum wage increases on reducing poverty is not always consistent, particularly when not accompanied by improvements in labor productivity and job creation. Conversely, the unemployment rate has shown a strong and positive relationship with poverty, indicating that higher unemployment tends to raise poverty levels. The findings highlight the importance of integrating wage policies with employment and productivity enhancement programs to achieve sustainable poverty reduction in Indonesia.