Absorption of Formal and Informal Sector Workers through the Minimum Wage: Studies in Indonesia

Ariani, Devanto Pratomo, Marlina Ekawaty and David Kaluge

Economic Studies journal, 2024, issue 3, 128-143

Abstract: This study aims to determine the effect of the minimum wage on employment in the formal and informal sectors in Indonesia. This study has a panel data set with a total of 170 observations consisting of 34 provinces in Indonesia during the 2017-2021 period. The use of the Ordinary Least Square (OLS) method, fixed effect, and random effect are used to compare the results of the three methods used. The results explain that the minimum wage has a negative and significant effect on the absorption of formal sector workers, while the minimum wage has a positive and significant effect on the absorption of informal sector workers.

JEL-codes: J23 O17 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.iki.bas.bg/Journals/EconomicStudies/2024/2024-3/08_Ariani.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2024:i:3:p:128-143

Access Statistics for this article

More articles in Economic Studies journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Diana Dimitrova ().