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The Influence of Kartu Prakerja Recipients and Provincial Minimum Wage on Aggregate Employment Absorption in Indonesia During the Demographic Bonus Era

Year: 2025

Type: article

Abstract: This study examines the impact of Kartu Prakerja recipients and the minimum wage (UMP) on employment absorption in Indonesia during the demographic bonus era. Using panel data regression with the Random Effect Model, secondary data from BPS, the Ministry of Manpower, and the Ministry of Home Affairs were analyzed. The results indicate that Kartu Prakerja has a positive and significant effect, while UMP has a negative but insignificant effect. Additionally, the productive-age population negatively affects employment absorption. All variables have a significant simultaneous influence. It is recommended to expand the Kartu Prakerja program, balance UMP policies with labor productivity, and prioritize job creation to effectively absorb the productive-age workforce.

Source: Formosa Journal of Multidisciplinary Research

DOI: 10.55927/fjmr.v4i4.142

Authors: Rama Putri Asia, Aprillia Nilasari

Institution: Universitas Negeri Surabaya

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Reduced inequalities

Open Access status: diamond

OpenAlex ID: W4410062186

FWCI:

Cites: 14

Cited by:

Related to: 10