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All Journal Airlangga Journal of Innovation Management
Djabal, Alvina
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Economics, Econometrics & Finance Social Sciences

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Effect of Wages, Economic Growth, and Human Development Index on the Labor Force Participation Rate Djabal, Alvina; Hariani, Ermatry
Airlangga Journal of Innovation Management Vol. 6 No. 4 (2025): Airlangga Journal of Innovation Management
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/ajim.v6i4.75567

Abstract

The annual increase in population is not always accompanied by sufficient growth in employment opportunities, resulting in various labor-related issues. One of the important indicators in assessing labor conditions is the Labor Force Participation Rate (LFPR), which reflects the number of working-age individuals actively participating in the labor market. This study aims to examine the effect of the Regency/City Minimum Wage (Minimum Regional Wages), economic growth, and the Human Development Index (HDI) on the Labor Force Participation Rate in 38 regencies/cities in East Java Province. The data used in this study are secondary data obtained from the Central Bureau of Statistics (BPS), and the analysis was conducted using panel data regression with the aid of E-Views 12 software. The results of the study indicate that MSEs and economic growth have no significant effect on the labor force participation rate, whereas the human development index has a significant effect on the labor force participation rate.
Co-Authors Hariani, Ermatry