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Factors that Influence the Rate of Unemployment in Indonesia

Author

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  • Erna A. R. Puspadjuita

Abstract

This research was aimed at analyzing the effect of urbanization, industrialization, labor force level, the elasticity of labor force and minimum regional wage rate in Indonesia. The analysis technique used were descriptive and multiple linear regression. The result on ¦Á = 5% shows that the labor force variable was significant to unemployment level in Indonesia. Industrialization shows a positive effect and non-significant to unemployment level, it means that the capability of industrial sector is lower in reducing unemployment compared with agricultural sector and service sector. The elasticity of labor force is negative and non-significant to unemployment sector. The result of regression shows that the elasticity of labor force is non-significant to unemployment level. The variable of minimum regional wage rate shows negative effect and non-significant to unemployment level means that the wage rate is not invisible.

Suggested Citation

  • Erna A. R. Puspadjuita, 2018. "Factors that Influence the Rate of Unemployment in Indonesia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(1), pages 140-147, January.
  • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:1:p:140-147
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    Citations

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    Cited by:

    1. Muhammad Awaluddin & Fitriadi Fitriadi & Arfiah Busari & Dio Caisar Darma, 2021. "Contemporary Indonesian GDP: Context of Analysis at Unemployment, Labor Force and Poor People," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 7(4), pages 143-154, 12-2021.
    2. Nidya Listiyono & Adi Wijaya & Irsan Tricahyadinata, 2021. "The effect of investment, education level, and government spending on economic growth and labor absorption in East Kalimantan Province, Indonesia," Technium Social Sciences Journal, Technium Science, vol. 20(1), pages 465-485, June.

    More about this item

    Keywords

    unemployment; Indonesia;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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