Optimum: Jurnal Ekonomi dan Pembangunan
Vol. 14 No. 1 (2024)

Effect of minimum wages on labor, welfare and economic growth: Evidence from East Java province

Rizal, Mohammad (Unknown)
Mustapita, Arini Fitria (Unknown)



Article Info

Publish Date
01 Apr 2024

Abstract

Wage issues are still a major concern, especially in Indonesia. The fact that wages constitute the most significant part of a person's income makes it an important indicator that reflects the level of welfare of a country. The minimum wage policy also serves as a protective tool for companies to maintain labor productivity. This research analyze the relationship between minimum wages and the number of labor, welfare, and economic growth in East Java. East Java has a significant role in the number of labor, prosperity, and economic growth, making a major contribution to the national economy with a substantial workforce. This research uses a quantitative approach. The data analysis technique uses canonical correlation statistical techniques. The data used taken from the annual reports of each city/district for 2018-2022, totaling 38 regions. The number of labor, welfare, and economic growth can be predicted through the city/district minimum wage. Meanwhile, individually, the minimum wage has the relationship with the number of labor because wages are the primary motivation of workers. In addition, the minimum wage is related to the welfare of workers in East Java, and the minimum wage is related to economic growth.

Copyrights © 2024






Journal Info

Abbrev

optimum

Publisher

Subject

Economics, Econometrics & Finance

Description

The Optimum: Jurnal Ekonomi dan Pembangunan aims to publicize the results of research concerning economics and development at national, and international levels with particular emphasis on the application of quantitative and qualitative ...