The Effect of Minimum Wage Rate Increases, Inflation Rate, Employment Rate, and Economic Growth in DKI Jakarta Toward the Labors' Economic Welfare in DKI Jakarta

Ghina Septia Filiana
Journal article Jurnal Ilmiah Universitas Bakrie • January 2014 Indonesia

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(Bahasa Indonesia, 2 pages)

Abstract

This study examined the effect of provincial minimum wage rate increases in DKI Jakarta, inflation rate, employment rate, and economic growth in DKI Jakarta toward the labors' economic welfare from year January 2002 to March year 2013. This study attempts to find which factors that have significant effect on labors' economic welfare as well as the relationship. This research conducted by using multiple regression model to examine the relationship between the independent variables and dependent variable. The overall F tests conducted shows that the model is proper to use and also fulfilled the classical assumption criteria. After the tests conducted, the result shows that 81.4% of labors' economic welfare is explained by the variations of all independent variables. The t test conducted shows that minimum wage rate increase, employment rate, and economic growth are significant to labors' economic welfare, while the inflation rate is insignificant. On the relationship calculated in this research, minimum wage rate increase, inflation, and economic growth have negative relationship towards labors' economic welfare, while only employment rate has positive relationship on labors' economic welfare.

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Jurnal Ilmiah Universitas Bakrie

Jurnal Ilmiah Universitas Bakrie merupakan jurnal ilmiah yang menyajikan artikel orisinal tentang... see more