Analysis of the Relevance of Foreign Investment, Domestic Investment, and Minimum Wage to Labor Absorption of Indonesia 1990 - 2019
Labor absorption is commonly used as an indicator to measure the development of human resources, including labor in a country. The development of labor absorption in Indonesia is quite good, but it is not accompanied by the condition of the level of employment opportunities which tends to decrease....
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2021-07-30.
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| 520 | |a Labor absorption is commonly used as an indicator to measure the development of human resources, including labor in a country. The development of labor absorption in Indonesia is quite good, but it is not accompanied by the condition of the level of employment opportunities which tends to decrease. This means that the absorption of labor has not been able to fully keep up with the growth rate of the labor force. The existing investment conditions are not yet optimal in terms of employment because existing investments are more focused on capital-intensive which is rich in technology. The level of the minimum wage that continues to increase can have a good impact on the workforce, but it is different from the company's perspective which considers it an increase in company expenses each year. This study aims to determine the effect of Foreign Investment, Domestic Investment, and Minimum Wage on Labor Absorption. This study uses data from 1990 to 2019. The method used in this study is a multiple linear regression analysis model using the OLS method. The results of multiple linear regression analysis show that (1) there is a significant influence between foreign investment on labor absorption (2) there is no influence between domestic investment on labor absorption (3) there is a significant influence between the provincial minimum wage on employment Labor. | ||
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