PENGARUH UPAH MINIMUM PROVINSI, PDRB DAN INVESTASI TERHADAP PENYERAPAN TENAGA KERJA SEKTOR INDUSTRI DI PULAU JAWA TAHUN 2010-2016

Abstract

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.