Analysis of the Determinants of Labor Absorption in the Industrial Sector in West Nusa Tenggara
Year: 2025
Type: article
Abstract: This study aims to analyze the influence of the Regional Minimum Wage, Investment Value, Industrial Sector Gross Domestic Product, Inflation, and Number of Business Units on labor absorption in the small and medium industrial sector in West Nusa Tenggara Province. A descriptive quantitative approach was used, utilizing secondary data sourced from the Department of Industry of West Nusa Tenggara Province and the Central Statistics Agency (BPS) of West Nusa Tenggara. The data analysis employed panel data regression with EViews 12 software. The panel data consisted of cross-sectional data from 10 districts/cities and time series data from 2019 to 2023. The results indicate that the Regional Minimum Wage, Investment Value, Industrial Sector GDP, and Number of Business Units collectively have a positive and significant effect on labor absorption in small and medium industries in the province. Individually, each of these variables also shows a positive and significant influence. Conversely, the inflation variable does not significantly impact labor absorption in small and medium industries in West Nusa Tenggara.
Authors: Dirman ., St. Maryam, M. Irwan
Institution: University of Mataram
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4410920565