HASANAH, Wanda Nurul (2023) Analysis Of The Effect Of Total Population, Education Level, Number Of Industries, Investment Value, And Minimum Wage On The Labor Supply Of Central Java Province (2010-2021). Skripsi thesis, Universitas Jenderal Soedirman.

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Abstract

The labor supply is the amount of labor that the owner of labor can provide at any possible wage in a given period of time. In classical theory, human resources (workers) are individuals who are free to make decisions to work or not. Even workers are also free to set the number of working hours they want. This theory is based on the theory of consumers, which each individual aims to. Maximizing satisfaction with the obstacles it faces. The current phenomenon of Central Java is that there are many jobs or industries while the Labor Force Participation Rate (LFPR) tends to be small, which makes the labor force distrust of the jobs/industries in the area. This research aims to determine whether the total population, higher education/university graduates, number of industries, investment value, and minimum wage affect labor supply in the Short and Long Run. This research is a quantitative research using the Autoregressive Distributed Lag (ARDL) Panel method using data on labor supply variables, population, higher education/university graduates, number of industries, investment value, minimum wage on an annual basis 2010-2021. Based on the results of the analysis that has been carried out using the Eviews application, it was obtained that in the Short and Long Run the total population (POP) has a positive and insignificant effect, the ratio of university graduates (UNIV) in the Short and Long Run has a negative and significant effect, the ratio of the number of industries (NI) has a positive and significant effect, the ratio of investment value (INVEST) has a negative and insignificant effect in the Short and Long Run, The minimum wage ratio (MW) has a positive and significant effect in the Short and Long Run on the labor supply (LFPR). The implication of the results of this research is that increasing population can increase labor supply but not significantly. Increasing higher education/university (UNIV) graduates can decrease labor supply. The increasing number of industries (NI) can increase the supply of labor. Increasing the value of investment (INVEST) can decrease the labor supply but not significantly. increasing the minimum wage (MW) can raise labor supply.

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