INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE)
Vol. 3 No. 7 (2026): INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE)

THE EFFECT OF GROSS REGIONAL DOMESTIC PRODUCT (GRDP) AND MUNICIPAL MINIMUM WAGE (MMW) ON THE OPEN UNEMPLOYMENT RATE ACROSS REGENCIES/CITIES IN BALI

Nabilil Wildan Nuril Anwar (Department of Economics, Faculty of Economics and Business, Udayana University)
Ida Bagus Putu Purbadharmaja (Department of Economics, Faculty of Economics and Business, Udayana University)



Article Info

Publish Date
16 Jan 2026

Abstract

Unemployment remains a persistent economic issue in regional development, including in Bali Province. The Open Unemployment Rate (OUR) reflects imbalances between labor supply and labor demand, which are influenced by regional economic performance and labor market policies. This study examines the effects of Gross Regional Domestic Product (GRDP) and the Regency/Municipality Minimum Wage (RMW) on the Open Unemployment Rate across regencies and municipalities in Bali Province. This study employs a quantitative approach using panel data from nine regencies and municipalities in Bali Province over the period 2019–2023. Secondary data were obtained from the Bali Provincial Statistics Office (BPS) and analyzed using panel data regression. Model selection was conducted using the Chow test and the Hausman test. The results indicate that GRDP has a negative and statistically significant effect on the Open Unemployment Rate, indicating that higher regional economic output is associated with lower unemployment. In contrast, the minimum wage has a positive and statistically significant effect on the Open Unemployment Rate, suggesting a potential reduction in labor demand. Simultaneously, GRDP and the minimum wage jointly have a significant effect on the Open Unemployment Rate across regencies and municipalities in Bali Province.

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Journal Info

Abbrev

INJOLE

Publisher

Subject

Description

INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE) is a scientific journal that publishes articles in the Business field includes conceptual ideas in the fields of Economics, Accounting, Management, business. The scopes are Human Resource Management, Marketing Management, Financial Management, ...