Universitas Islam Malang Conference, ECONOMICS, BUSINESS, ENTREPRENEURSHIP & SOCIAL SCIENCES INTERNATIONAL CONFERENCE 2023

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WHAT IS THE RELATIONSHIP BETWEEN MINIMUM WAGES IN CITIES/REGENCIES AND THE QUANTITY OF LABOR, WELL-BEING, AND ECONOMIC GROWTH?
Bela Sinta Wati, Mohammad Rizal Rizal, Mufidatul Sa'diah Sa'diah, Arini Fitria Mustapita

Last modified: 2024-02-01

Abstract


The issue of wages remains a significant concern, particularly in developing nations such as Indonesia. Given that wages constitute the primary portion of an individual's income, it serves as a crucial indicator reflecting a country's level of well-being. This study examines the correlation between the Minimum Wage and the Quantity of Labor, Prosperity, and Economic Growth in East Java. This research falls under the category of experimental research, employing a quantitative approach to provide a numerical explanation. The data analysis method involves the use of the canonical correlation statistical technique. The study reveals that the number of workers, well-being, and economic growth can be forecasted based on city/regency minimum wages. Among these factors, the city/regency minimum wage demonstrates the closest association with the quantity of workers. This is attributed to wages serving as the primary motivator for the workforce. Additionally, city/regency minimum wages correlate with the welfare of workers in East Java while also being linked to the region's economic growth.

Keywords: City/Regency Minimum Wages, Number of Labor, Welfare, Economic Growth


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