The observance of Labor Day on May 1 is not merely a formality but a crucial event highlighting the urgency of improving worker welfare amid West Java's dynamic economic conditions. Wage setting remains highly complex due to the diverse economic landscapes and living needs across the region’s regencies. This study analyzes the influence of Per Capita Expenditure, GRDP at Constant Prices (PDRB ADHK), Poverty Rate, and Open Unemployment Rate on Regency/City Minimum Wages (UMK) in West Java. Using secondary data from the Central Statistics Agency (BPS), the study employs panel data regression with a Fixed Effects Model (FEM). The results indicate that Per Capita Expenditure, ADHK GRDP, Poverty Rate, and Open Unemployment Rate simultaneously influence UMK after logarithmic transformations were applied to the expenditure and GRDP variables. Partially, all independent variables exhibit a significant and positive effect. These findings demonstrate that such variables serve as crucial instruments for the government in determining UMK levels in West Java to balance economic growth and worker welfare.
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