Proceeding ISETH (International Summit on Science, Technology, and Humanity)
2025: Proceeding ISETH (International Summit on Science, Technology, and Humanity)

The Factors Determining Open Unemployment in West Java Province: The Role of Wage, Economic Growth, and Education

Nurul Nida Fadhila (Universitas Muhammadiyah Surakarta)
Winny Perwithosuci (Universitas Muhammadiyah Surakarta)



Article Info

Publish Date
05 Feb 2026

Abstract

Purpose: The primary objective of this research is to analyze the socio-economic determinants of the open unemployment rate in West Java. The investigation focuses on how regional wage policies, the number of poor people, economic performance, and education levels across different region from 2020 to 2024. Methodology: The analysis based on secondary data from Statistics Indonesia (BPS) and the West Java Open Data Center, estimated using panel data regression. Stata 14 software was used. Model selection was performed using the Chow and Hausman tests, with the Fixed Effect Model identified as the most appropriate specification.Results: Empirical evidence reveals that the number of poor people is positively and significantly related to open unemployment, while economic growth and average length of schooling exhibit a significant negative relationship. Conversely, the minimum wage was not found to have statistically significant effect on open unemployment. Applications/Originality/Value: These findings highlight the importance of strengthening education levels and maintaining economic growth to reduce unemployment in West Java. Meanwhile, the increasing number of poor people actually worsens labor market condition.

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Journal Info

Abbrev

iseth

Publisher

Subject

Computer Science & IT Engineering Medicine & Pharmacology Social Sciences Other

Description

The International Summit on Science, Technology and Humanity (ISETH) is organised by Universitas Muhammadiyah Surakarta. This summit aims to provide a platform for researchers and academics to share their research findings with others and meet lecturers and researchers from other institutions and to ...