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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Format: | Article |
Language: | English |
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Universitas Islam Indonesia
2011-09-01
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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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first_indexed | 2024-04-12T19:21:44Z |
format | Article |
id | doaj.art-8bbc2b5a25c741d286529519640b1f68 |
institution | Directory Open Access Journal |
issn | 2086-3128 2502-180X |
language | English |
last_indexed | 2024-04-12T19:21:44Z |
publishDate | 2011-09-01 |
publisher | Universitas Islam Indonesia |
record_format | Article |
series | Economic Journal of Emerging Markets |
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 |