Pengaruh Upah Minimum terhadap Penyerapan Tenaga Kerja dan Kesejahteraan Masyarakat di Provinsi di Indonesia
Rini Sulistiawati
Fakultas Ekonomi Universitas Tanjungpura Pontianak. Jalan Ahmad Yani Pontianak
Alamat Korespondensi, email: rini_s5300@yahoo.co.id
Abstract - The achievement of social welfare as the ultimate goal of development requires th
creation of basic conditions, namely: 1) sustainable economic growth; 2) the creation of a
strong economic sector; and 3) an inclusive and equitable economic development (Bappenas,
2010). The social welfare are expected to be achieved if the economy continues to grow that in
turn will create more job opportunities and absorb more labor at fair wages.This study aims to
examine and analyze the effect of wages on labor absorption and social welfare at province in
Indonesia. The study period was five years i.e. from 2006 to 2010 by using secondary data
provided by Central Bureau of Statistics in the form of combination between times series data
(from 2006 to 200)and cross section data (33 province in Indonesia) also known as panel
data. Hypothesis testing in this study is conducted by using Path Analysis Model under SPSS
17.0. Test of 2 (two) hypothesis with level of significance α = 0.05 obtained the following
results: First, minimum wage has a negative and significance effect on labor absorption. The
effect of minimum wages on employment has a path coefficient of - 0.39 with a probability
value of significance (Sig) of 0.000. The results of this study indicate that the increase in
minimum wages will reduce employment of low productivity labor that commonly absorb in
primary sector, the sector that absorb most labor. Second, labor absorption has positive but
not significance effect on social welfare. The effect of labor absorption on social welfare has
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