Airlangga Journal of Innovation Management
Vol. 6 No. 4 (2025): Airlangga Journal of Innovation Management

Effect of Wages, Economic Growth, and Human Development Index on the Labor Force Participation Rate

Djabal, Alvina (Unknown)
Hariani, Ermatry (Unknown)



Article Info

Publish Date
13 Dec 2025

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.

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Journal Info

Abbrev

AJIM

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Airlangga Journal of Innovation Management (AJIM) aims to link the research and practice of innovation management. AJIM adopt a multidisciplinary approach to addressing the many challenges of managing innovation. AJIM encourages the submission of papers addressing the multidisciplinary nature of the ...