Laporkan Masalah

THE IMPACT OF PROVINCIAL MINIMUM WAGE ON YOUTH EMPLOYMENT SHARE IN INDONESIA

Tejaningsih, S.E., Professor Shingo Takahashi,

2011 | Tesis | S2 Magister Ek.Pembangunan

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This study analyzes the impact of provincial minimum wage on the youth employment share in Indonesia from 2005 to 2009 covering 30 provinces. The fixed effects model is used in this study with Sakernas survey data. This study finds that the provincial minimum wage has a negative impact on the youth employment share, though the results are sensitive to several model specifications. In general, we found that 1% increase in minimum wage will decrease youth employment share by 0.3%. The lag of minimum wage tends to have stronger effects, indicating that it takes some time for firms to react to the change in minimum wage.

Kata Kunci : Provincial minimum wage, the youth employment share, GRDP


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