Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach

Economic development constantly faces various macroeconomic issues such as achieving inflation targets, creating job opportunities, increasing economic growth, solving unemployment problems, and flattening income distribution. This study aims at analyzing the impact of provincial minimum wages, econ...

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Main Authors: Gatot SASONGKO, Bernard Edheney HURUTA, Andrian Dolfriandra HURUTA
Format: Article
Language:English
Published: Editura ASE 2020-06-01
Series:Management and Economics Review
Subjects:
Online Access:http://mer.ase.ro/files/2020-1/5-11.pdf
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author Gatot SASONGKO
Bernard Edheney HURUTA
Andrian Dolfriandra HURUTA
author_facet Gatot SASONGKO
Bernard Edheney HURUTA
Andrian Dolfriandra HURUTA
author_sort Gatot SASONGKO
collection DOAJ
description Economic development constantly faces various macroeconomic issues such as achieving inflation targets, creating job opportunities, increasing economic growth, solving unemployment problems, and flattening income distribution. This study aims at analyzing the impact of provincial minimum wages, economic growth, and education level on female labor force participation rate. We generated the data from Indonesia's Central Bureau of Statistics website. This study employs panel data that consists of the time-series data from 2014 to 2018 and cross-sectional data of 34 provinces in Indonesia. By using the fixed-effect econometric model, we demonstrate that the provincial minimum wage and education level have significantly positive effects on female labor force participation rate. However, economic growth has no significant effect on female labor force participation rate. These findings suggest that the Indonesian government needs to consider minimum wages, education, work age, and work experience as policy instruments to increase female labor force participation rate. This study contributes to the literature in Indonesia by using a panel data approach.
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spelling doaj.art-fe3fc5479e5f49e7be1957ec914a3c4e2022-12-21T17:44:52ZengEditura ASEManagement and Economics Review2501-885X2501-885X2020-06-015113614610.24818/mer/2020.06-11Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data ApproachGatot SASONGKO0Bernard Edheney HURUTA1Andrian Dolfriandra HURUTA2Faculty of Economics and Business, Satya Wacana Christian University, IndonesiaFaculty of Economics and Business, Satya Wacana Christian University, IndonesiaFaculty of Economics and Business, Satya Wacana Christian University, IndonesiaEconomic development constantly faces various macroeconomic issues such as achieving inflation targets, creating job opportunities, increasing economic growth, solving unemployment problems, and flattening income distribution. This study aims at analyzing the impact of provincial minimum wages, economic growth, and education level on female labor force participation rate. We generated the data from Indonesia's Central Bureau of Statistics website. This study employs panel data that consists of the time-series data from 2014 to 2018 and cross-sectional data of 34 provinces in Indonesia. By using the fixed-effect econometric model, we demonstrate that the provincial minimum wage and education level have significantly positive effects on female labor force participation rate. However, economic growth has no significant effect on female labor force participation rate. These findings suggest that the Indonesian government needs to consider minimum wages, education, work age, and work experience as policy instruments to increase female labor force participation rate. This study contributes to the literature in Indonesia by using a panel data approach.http://mer.ase.ro/files/2020-1/5-11.pdffemale labor force participation rateprovincial minimum wageeconomic growtheducation levelpanel data
spellingShingle Gatot SASONGKO
Bernard Edheney HURUTA
Andrian Dolfriandra HURUTA
Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach
Management and Economics Review
female labor force participation rate
provincial minimum wage
economic growth
education level
panel data
title Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach
title_full Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach
title_fullStr Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach
title_full_unstemmed Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach
title_short Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach
title_sort female labor force participation rate in indonesia an empirical evidence from panel data approach
topic female labor force participation rate
provincial minimum wage
economic growth
education level
panel data
url http://mer.ase.ro/files/2020-1/5-11.pdf
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