Open AccessThe Analysis of the Impact of GDP, FDI, Minimum Wage on Employment in Indonesia
Author(s) -
Thomson Sitompul,
Yansen Simangunsong
Publication year - 2019
Publication title -
international journal of management, entrepreneurship, social science and humanities (ijmesh)
Language(s) - English
Resource type - Journals
ISSN - 2580-0981
DOI - 10.31098/ijmesh.v2i2.17
Subject(s) - foreign direct investment , scope (computer science) , economics , gross domestic product , minimum wage , wage , labour economics , product (mathematics) , investment (military) , measures of national income and output , real gross domestic product , developing country , macroeconomics , economic growth , geometry , mathematics , politics , computer science , political science , law , programming language
Unlike the previous study in determinant of labor absorption, which focused on economic sector and took up regional scope, this paper examines the impact of Gross Domestic Product, Foreign Direct Investment and Minimum Wages on labor absorption in Indonesia which take the national scope and aggregate labor by using secondary series of time series data (1990-2015). This study contributes to the limited literature on aggregate employment and national scope as the impact of the minimum wage, GDP, FDI in developing countries, especially in Indonesia. By using multiple linear regression models, surprisingly, we find that GDP and Minimum Wages have a positive and significant impact to increase employment while FDI does not affect employment in Indonesia.