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The Effect of Provincial Minimum Wage, Open Unemployment Rate, and Average Years of Schooling on Labor Force Participation Rate in East Java Province

Year: 2025

Type: article

Abstract: This research is motivated by human resources as a factor in economic development. Population productivity is measured through the labor force participation rate (LFPR). East Java Province is ranked second in LFPR in Java Island along with the fourth rank for the level of completion of high school/vocational high school education among provinces in Java Island. This study highlights education which is one of the factors in the LFPR benchmark in addition to minimum wages and open unemployment rates. This analysis was conducted using the classical assumption test, multiple linear regression analysis, t-test and F-test. The results of the analysis produced a provincial minimum wage variable with a negative and significant effect, the open unemployment rate with a negative and insignificant effect, while the average length of schooling had a positive and significant effect.

Source: Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE)

DOI: 10.31538/iijse.v9i1.7510

Authors: Amelya Romawati, Ririt Iriani Sri Setiawati

Institution: University of Pembangunan Nasional Veteran Jawa Timur

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, Quality education, No poverty

Open Access status: diamond

OpenAlex ID: W7102431908

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