scholarly journals Determinants of Unemployment in the Large and Medium Industrial Sector in Indonesia

2021 ◽  
Vol 2 (3) ◽  
pp. 110-117
Author(s):  
Tarmizi Zulkifli Abdurachman ◽  
Sofyan Syahnur ◽  
Putri Bintusy Syathi

As a country with the second-highest unemployment rate, Indonesian policymakers should worry about this condition. Based on the macroeconomic perspective, unemployment is affected by the firms' labour demand. It highlights that the firm's profit or loss highly determines the labour force demand. Using the Fixed Effect Model, this study results show that the labour force significantly affects industrial output, and the changes of industrial output highly increase the labour demand in the market. However, foreign and domestic capital neither significantly reduce unemployment rate in Indonesia nor stimulate the large and medium industries to absorb labour in the market. The Government should utilize foreign and domestic capital efficiently as possible to reduce unemployment rate.

2020 ◽  
Vol 1 (2) ◽  
pp. 169-190
Author(s):  
Desy Meilasari

This research aims to analyze the effect of provincial Minimum wage (UMP), PDRB, and investment in theindustrial sector of labor absorption on Java island in 2010-2016. Data used is a data panel consisting of datatime series 2010 – 2016 and cross section six provinces namely DKI Jakarta, West Java, Central Java, INYogyakarta, East Java, and Banten. The Anaalisis tool used is a data regression panel i.e. Fixed Effect Model(FEM). The results showed that UMP has a significant effect on the labor absorption of the industrial sector onJava Island in 2010-2016. While the PDRB and investment have a positive and significant effect on the laborabsorption of industrial sectors in Java Island in 2010-2016. Through this research, the government expectsmore cautious and creating a conducive investment climate so that the value of PDRB is increasing.


2021 ◽  
Vol 5 (2) ◽  
pp. 111-120
Author(s):  
Desy Meilasari

This research aims to analyze the effect of provincial Minimum wage (UMP), PDRB, and investment in the industrial sector of labor absorption on Java island in 2010-2016. Data used is a data panel consisting of data time series 2010 – 2016 and cross section six provinces namely DKI Jakarta, West Java, Central Java, IN Yogyakarta, East Java, and Banten. The Anaalisis tool used is a data regression panel i.e. Fixed Effect Model (FEM). The results showed that UMP has a significant effect on the labor absorption of the industrial sector on Java Island in 2010-2016. While the PDRB and investment have a positive and significant effect on the labor absorption of industrial sectors in Java Island in 2010-2016. Through this research, the government expects more cautious and creating a conducive investment climate so that the value of PDRB is increasing.  


2018 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Laurensius Surya A. U. ◽  
Nanik Istiyani ◽  
Rafael Purtomo

Unemployment is a major problem in macroeconomics. The study aims to determine the effect Rate of Gross Regional Domestic Product (GDP), Population, and the regional minimum wage (UMR) of the Unemployment Rate in East Java. Analysis method used in this research is panel data regression with fixed effect model approach (FEM). This study uses secondary data from the Central Bureau of Statistics (BPS). The data used in this research are open unemployment rate, GDP rate, population, regional minimum wage in Provinsi of East Java in 2006-2014. Based on the analysis, it can be seen that the variable rate of the GDP, and the local minimum wage and a significant negative effect on the variable Unemployment Rate in East Java province. Variable population no significant and negative effect on the variable unemployment rate in East Java Province.The results of this study indicate that the variable rate of Gross Regional Domestic Product (GDP) has a significant influence based on it is expected that the government can support investment in the small and medium enterprise sector.Keywords: Unemployment Rate, Rate of Gross Regional Domestic Product (GDP), Population, Regional Minimum Wage (UMR)


d'CARTESIAN ◽  
2021 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Ananto Wibowo ◽  
M. Rismawan Ridha

The implementation of various policies in poverty alleviation in Indonesia has yielded good results. This condition is reflected by the downward trend in the percentage of poor people who reached a single digit in 2018. However, this has not much-changed the conditions in some of the poorest provinces such as Maluku, East Nusa Tenggara, West Papua, and Papua. This study aims to analyze the effect of Economic Growth, Unemployment Rate, and Human Development Index (HDI) on poverty in the four poorest provinces from 2011 to 2018. The research data sources from Statistics Indonesia (BPS) with the analytical tool used in estimating the panel data regression model is the Fixed Effect Model (FEM). The results show that economic growth and HDI have a negative effect on the poverty. In reverse, the Unemployment Rate has an insignificant effect. Based on the research results, the government advised coordinating with relevant stakeholders in formulating policies to increase welfare and purchasing power, improve the quality of education, and optimize health services in the four poorest provinces. 


2021 ◽  
Vol 292 ◽  
pp. 03034
Author(s):  
Dapeng Dong ◽  
Yan Xu ◽  
Guiyan Zhao ◽  
Yihui Qi

Based on the panel data of 34 cities in Northeast China, this paper uses fixed-effect model and quantile regression method to empirically test the influencing factors of industrial structure upgrading. The results show that the government has led the upgrading of the industrial structure in Northeast China, economic growth and investment in fixed assets has inhibitory effect on industrial structure upgrade, the level of opening to the outside world, the financial sector development and the increase of human capital in the northeast has obvious role in promoting industrial structure upgrade. The quantile regression results show that the coefficient of each factor are basically consistent with the estimated results of ordinary panel fixed effect model, which further verifies the robustness of the research conclusions in this paper.


2020 ◽  
Vol 64 (4) ◽  
pp. 459-473
Author(s):  
Adeyemi Babasanya ◽  
◽  
Olukayode Maku ◽  
Joseph Amaefule ◽  
◽  
...  

The study evaluated the role of sectoral labour force and the national savings on the manufacturing sector output in Nigeria from 1985 to 2019, a period of 35years. Data was sourced from Central Bank Of Nigeria (CBN) statistical bulletin various issues up until 2017, National Bureau of Statistics (NBS), and World Development Index (WDI). Data were analyzed using Vector Error Correction Model (VECM). The VECM result revealed that national savings and labour force have long run positive effect on the manufacturing sector output, while exchange rate and inflation have long-run negative effect on the manufacturing sector output. It could be deduced from this study that national savings, labour force in the industrial sector, inflation and exchange rate are very critical factors that determine the growth and survival of the manufacturing sector. Hence, it was recommended that the government look critically to the manufacturing sector and revamp the sector by making credit facility to the sector, and increase the use of domestic raw materials.


2021 ◽  
Vol 19 (2) ◽  
pp. 354-362
Author(s):  
Ichsan Ichsan ◽  
◽  
Ira Silvia ◽  
Mahdawi Mahdawi ◽  
Ghazali Syamni ◽  
...  

This study aims to examine some factors affecting the financial performance of manufacturing companies in the Indonesia Stock Exchange (IDX). This research uses data on the financial statements of 20 manufacturing companies listed on IDX in the period 20132017 and carried out share distribution facilities for their employees. This research model is a panel regression model done by testing the common effect model, fixed-effect model, and random effect model. Based on the Chow test and Hausman test, it is found that the best model in this study is the fixed effect model. The study results find that dividend policy, a share giving program to employees, and debt to equity ratio are significant factors affecting the financial performance of manufacturing companies in Indonesia. From these three factors, the debt to equity ratio is the dominant factor determining the financial performance of manufacturing companies, while investment decision does not significantly affect it. Future research studies can be carried out by focusing on other industrial sectors such as the Jakarta Islamic Index 70 and adding other macroeconomic variables.


2021 ◽  
Vol 10 (1) ◽  
pp. 12-21
Author(s):  
Irim Tiara Puri ◽  
Khoirunurrofik Khoirunurrofik

Regional disparities between rural and urban areas in Indonesia are still being an important issue inthe economic development. The government has carried out an economic stimulus in the village,one of them is through the Village Fund program for village development. One of the potentialpositive effects of implementing the Village Fund in Indonesia is creating a local economicinstitution that is expected to be able to develop the competition between villages through Village-Owned Enterprises (BUMDes). This study aimed to find out the empirical evidence whetherBUMDes, as one of the programs driving the village economy affected the welfare of ruralcommunities by looking at the differences in the improvement of the village economy. This studyused BUMDes and Village Potential (Podes) data in 2014 and 2018, and Village Fund Allocationas a proxy for economic activity at the village level by using the econometric model approach ofPropensity Score Matching and Difference in Difference with a fixed effect model. The resultsshowed that villages that had BUMDes gave a greater effect than the ones which did not haveBUMDes in improving the economy of the village community.


Author(s):  
Rima Eka Kurnia ◽  
Yustirania Septiani

The research objective was to analyze the social and economic factors that affect unemployment in the development area of Central Java, namely in Brebes Regency, Tegal City, Tegal Regency, and Pemalang Regency (BREGASMALANG) in 2010-2020. The determinants of unemployment used in this study include the human development index, district/city minimum wage, and gross regional domestic product. The data used in this study are secondary data obtained from the Central Statistics Agency (BPS). The research method used in Panel Data Regression Analysis with Fixed Effect Model (FEM). The result of this study indicates that the human development index & district/city minimum wage it means that it has no significant effect on the open unemployment rate in Bregasmalang. Meanwhile, the gross regional domestic product has a negative and significant effect on the open unemployment rate in Bregasmalang. With the influence of regional gross domestic product on the open unemployment rate, therefore the government is expected to be able to maximize the sub-sectors contained in the GRDP so that the sub-sector is able to increase employment so that it can suppress the high unemployment rate in the Regency/City concerned, namely the Brebes Regency, Tegal City, Tegal Regency, and Pemalang Regency.Keywords: Open Unemployment Rate, HDI, District/City Minimum Wages, and GRDP


2020 ◽  
Author(s):  
Giovanni Scabbia ◽  
Antonio Sanfilippo ◽  
Annamaria Mazzoni ◽  
Dunia Bachour ◽  
Daniel Perez-Astudillo ◽  
...  

Abstract A growing number of studies has suggested potential impacts of meteorological variables on the spread of the COVID-19 pandemic. These impacts are supported by data from similar viral contagions, such as SARS and the 1918 Flu Pandemic, and corroborated by US influenza data relative to the last decade. However, there is still limited understanding about the extent to which meteorology affects COVID-19 transmission rates and how meteorology can be a relevant element to anticipate social and politic measures. This study demonstrates that such an understanding is attainable through the development of regression models that verify the contribution of meteorology to the modeling of COVID-19 transmission, and the use of feature importance techniques assessing the relative weight of meteorological variables compared to epidemiological, socioeconomic, environmental, and global health indicator factors. The study results show that meteorological factors play an important role in regression models of COVID-19 transmission that have low error rates (R2 0.964). These results are corroborated by a panel data fixed-effect model showing that meteorological coefficients are often significantly correlated with COVID-19 transmission rates (R2 0.691-0.746, p<0.01).


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