International Journal of Management, Entrepreneurship, Social Science and Humanities (IJMESH)
Vol. 2 No. 2 (2019): December 2019

The Analysis of the Impact of GDP, FDI, Minimum Wage on Employment in Indonesia

Thomson Sitompul (Labor and Demographic Economics, Universitas Indonesia)
Yansen Simangunsong (Economics, Universitas Bengkulu)

Article Info

Publish Date
25 Dec 2019

Abstract

Unlike the previous study in determinant of labor absorption, which focused on economic sector and took up regional scope, this paper examines the impact of Gross Domestic Product, Foreign Direct Investment and Minimum Wages on labor absorption in Indonesia which take the national scope and aggregate labor by using secondary series of time series data (1990-2015). This study contributes to the limited literature on aggregate employment and national scope as the impact of the minimum wage, GDP, FDI in developing countries, especially in Indonesia. By using multiple linear regression models, surprisingly, we find that GDP and Minimum Wages have a positive and significant impact to increase employment while FDI  does not affect employment in Indonesia.

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Journal Info
International Journal of Management, Entrepreneurship, Social Science and Humanities (IJMESH)
Website

Abbrev

ijmesh

Publisher

Research Synergy Foundation

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Social Sciences

Description

The journal has an international perspective on Management, entrepreneurship, Social Science and Humanities and publishes conceptual papers and empirical studies which bring together issues of interest to academic researchers and educators, policy-makers and practitioners worldwide. The editorial ...