EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE

Aurora Indra Putri

Abstract

Unemployment has been a main problem in economic development, especially in developing countries. Unemployment stems from the inability of the economy to absorb the growing labor force. This paper investigates factors influencing absorbtion of labor in Yogyakarta manufacturing industries. Variables hypothesized to affect the absorbtion are wage, labor productivity, non-wage spending, and output of production. It collects data from Indonesia Centre Bureau of Statistics, and uses panel data regression, namely common effect approach, to estimate the model. Employing Eviews software package, it finds that wage, labor productivity, and output production significantly influence labor absorption. However, non-wage spending does not significantly influence the absorption.

Keywords: Labor absorption, wage, labor productivity, non-wage spending
JEL classification numbers: J01, J23, J24

Full Text:

PDF




Economic Journal of Emerging Markets indexed in:
  

  Harvard Library   Google Scholar Indonesian Publication Index (IPI)   WorldCat  Harvard Library  University of Oxford    
 
 Creative Commons License
Economic Journal of Emerging Markets by http://journal.uii.ac.id/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.