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All Journal Signifikan : Jurnal Ilmu Ekonomi
Kusuwardhani, Vebry Eka
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Economics, Econometrics & Finance

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The Dynamics of Indonesian Migrant Workers: Their Short- and Long-Term Impact Santoso, Edy; Kusuwardhani, Vebry Eka; Muslihatinningsih, Fivien
Signifikan: Jurnal Ilmu Ekonomi Vol. 15 No. 1 (2026)
Publisher : Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/sjie.v14i2.46422

Abstract

Research Originality: This study integrates factors influencing Indonesian migrant workers into a Panel VECM model that captures both short- and long-term dynamics. Research Objectives: This study investigates the factors that affect the short- and long-term migration of Indonesian migrant workers. Research Methods: This study uses the Vector Error Correction Model (VECM) approach. Panel data were analyzed for six provinces on Java Island, covering the period 2008 to 2023. Empirical Results: This study found significant positive effects of provincial minimum wage, employment opportunity rates, and poverty levels on the short-term migration of Indonesian migrant workers in Java. In the long term, all variables positively influenced Indonesian migrant worker migration, except for poverty, which had a non-significant effect. Implications: These findings indicate an anomaly in the factors influencing the PMI. Therefore, we assert that policymakers in Indonesia must periodically review and adjust the UMP and implement effective price-control measures to ensure that workers’ basic needs are met at a reasonable cost of living. JEL Classification: C33, F22, I32, J61, J62
Co-Authors Edy Santoso Fivien Muslihatinningsih