EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE

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...

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Main Author: Aurora Indra Putri
Format: Article
Language:English
Published: Universitas Islam Indonesia 2011-09-01
Series:Economic Journal of Emerging Markets
Online Access:http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/2306
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author Aurora Indra Putri
author_facet Aurora Indra Putri
author_sort Aurora Indra Putri
collection DOAJ
description 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
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spelling doaj.art-8bbc2b5a25c741d286529519640b1f682022-12-22T03:19:35ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2011-09-0122EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASEAurora Indra PutriUnemployment 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 http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/2306
spellingShingle Aurora Indra Putri
EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE
Economic Journal of Emerging Markets
title EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE
title_full EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE
title_fullStr EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE
title_full_unstemmed EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE
title_short EMPLOYMENT ABSORPTION IN MANUFACTURING INDUSTRY: YOGYAKARTA CASE
title_sort employment absorption in manufacturing industry yogyakarta case
url http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/2306
work_keys_str_mv AT auroraindraputri employmentabsorptioninmanufacturingindustryyogyakartacase