Absorption of Labor in the Surakarta Residency

Masga Azhary Haznur () and Eni Setyowati
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Masga Azhary Haznur: Universitas Muhammadiyah Surakarta, Faculty of Economics and Business
Eni Setyowati: Universitas Muhammadiyah Surakarta, Faculty of Economics and Business

A chapter in Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2), 2024, pp 3-14 from Springer

Abstract: Abstract Labor absorption can be defined as the number of jobs that have been filled, seen from the number of working people. Every year the labor force continues to experience fluctuations, but the jobs created tend to be small. As a result of the imbalance between the growth of the labor force and employment, it causes disparities in development between regions. Gross Regional Domestic Product and Human Development Index. The data used in this study is secondary data from 6 regencies and one city in the Surakarta Residency for the 2017–2021 period. The data analysis method used in this research is panel data using Eviews-10 software. The results of this research analysis show that the district/city minimum wage variable positively and significantly affects employment absorption in the Surakarta residency area. Meanwhile, the variables of population and gross regional domestic product (GDP) have a positive but not significant effect on employment absorption. In contrast, the Human Development Index (HDI) variable shows no effect on employment absorption in the Surakarta residency from 2017 to 2021. It is hoped that it will increase the number of samples and be able to carry out tests in various regions for the study population.

Keywords: Labor Absorption; District/City Minimum Wage; Gross Regional Domestic Product; Human Development Index (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-204-0_2

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