International Journal of Global Operations Research
Vol. 2 No. 3 (2021): International Journal of Global Operations Research (IJGOR), August 2021

Determinants of Unemployment in the Large and Medium Industrial Sector in Indonesia

Abdurachman, Tarmizi Zulkifli (Unknown)
Syahnur, Sofyan (Unknown)
Syathi, Putri Bintusy (Unknown)

Article Info

Publish Date
06 Aug 2021

Abstract

As a country with the second-highest unemployment rate, Indonesian policymakers should worry about this condition. Based on the macroeconomic perspective, unemployment is affected by the firms' labour demand. It highlights that the firm's profit or loss highly determines the labour force demand. Using the Fixed Effect Model, this study results show that the labour force significantly affects industrial output, and the changes of industrial output highly increase the labour demand in the market. However, foreign and domestic capital neither significantly reduce unemployment rate in Indonesia nor stimulate the large and medium industries to absorb labour in the market. The Government should utilize foreign and domestic capital efficiently as possible to reduce unemployment rate.

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Journal Info
International Journal of Global Operations Research
Website

Abbrev

ijgor

Publisher

Indonesian Operations Research Association

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Mathematics

Description

International Journal of Global Operations Research (IJGOR) is published 4 times a year and is the flagship journal of the Indonesian Operational Research Association (IORA). It is the aim of IJGOR to present papers which cover the theory, practice, history or methodology of OR. However, since OR is ...