Pengaruh Tingkat Upah Minimum dan Inflasi Terhadap Produktivitas Tenaga Kerja di Indonesia Tahun 2014 - 2024
DOI:
https://doi.org/10.20527/jiep.v8i2.2656Keywords:
Data Panels, Economic Growth, Provincial Minimum Wage (UMP), Open Unemployment Rate, Poverty Level., Inflation Rate, GDRPAbstract
This study aims to analyze the impact of inflation and minimum wage on labor productivity in Indonesia during the period 2014–2024. Productivity is measured by Gross Regional Domestic Product (GRDP) at current prices across provinces. The study employs panel data of 36 provinces with a total of 317 observations, analyzed using the Generalized Least Squares (GLS) method to address issues of autocorrelation and heteroskedasticity. The results show that both inflation and minimum wage have a positive and significant effect on labor productivity. Inflation is significant at the 1% level, while the minimum wage is significant at the 5% level. These findings highlight the importance of price stability and measured minimum wage policies in supporting regional labor productivity growth. The coefficient of determination (R²) is 0.3936, and the F-statistic test shows a probability value of 0.0000 (p < 0.05), indicating that all independent variables collectively have a significant effect on GDP.
References
Álvarez, R., & Fuentes, R. (2018). Minimum Wage and Productivity: Evidence from Chilean Manufacturing Plants. Https://Doi.Org/10.1086/697557, 67(1), 193–224. https://doi.org/10.1086/697557
Coviello, D., Deserranno, E., & Persico, N. (2019). Minimum Wage and Individual Worker Productivity: Evidence from a Large US Retailer *.
Gneezy, U., & Rustichini, A. (2000). Pay Enough or Don’t Pay at All. Quarterly Journal of Economics, 115(3), 791–810.
Iheanacho, E. (2017). Emperical Review on the Relationship between Real Wages, Inflation and Labour Productivity in Nigeria. ARDL bounds testing approach. Issues in Economics and Business, 3(1), 9–29. https://ideas.repec.org/a/mth/ieb888/v3y2017i1p9-29.html
Krugman, P. (1994). The Age of Diminished Expectations: U.S. Economic Policy in the 1990s. MIT Press.
Ho, L. P., and S. F. Yap. 2001. “The Link between Wages and Labour Productivity: An Analysis of the Malaysian Manufacturing Industry.” Malaysian Journal of Economic Studies 38 (1–2): 51–57.
Hondroyiannis, G., and E. Papapetrou. 1997. “Seasonality-Cointegration and the Inflation, Productivity and Wage Growth Relationship in Greece.” Social Science Journal 34 (2): 235–247.
Mahadevan, R., and J. Asafu-Adjaye. 2006. “Is There a Case for Low Inflation-Induced Productivity Growth in Selected Asian Economies?” Contemporary Economic Policy 24 (2): 249–261.
Moses, L. N. (1962). Toward a Theory of Intra-Urban Wage Differentials and Their Influence on Travel Patterns. Papers in Regional Science, 9(1), 53–63.
Slaveski, T., & Kozheski, K. (2024a). Labour Productivity, Wages, and Inflation: Evidence from Selected Central and South-East European Countries. Journal of Eurasian Economies, 3(1), 1–16. https://doi.org/10.36880/J03.1.0130
Slaveski, T., & Kozheski, K. (2024b). Labour Productivity, Wages, and Inflation: Evidence from Selected Central and South-East European Countries. Journal of Eurasian Economies, 3(1), 1–16. https://doi.org/10.36880/J03.1.0130
Smyth, D. J. 1995. “Inflation and Total Factor Productivity in Germany.” Review of World Economics 131 (2): 403–405. Strauss, J., and M. E. Wohar. 2004. “The Linkage between Prices, Wages, and Labor Productivity: A Panel Study of Manufacturing Industries.” Southern Economic Journal 70 (4): 920–941.
Tang, C. F. (2014). The effect of real wages and inflation on labour productivity in Malaysia. International Review of Applied Economics, 28(3), 311–322. https://doi.org/10.1080/02692171.2013.872084;PAGE:STRING:ARTICLE/CHAPTER
Wakeford, J. 2004. “The Productivity-Wage Relationship in South Africa: An Empirical Investigation.” Development Southern Africa 21 (1): 109–132.
Williams, C. G. 1970. Labor Economics. New York: John Wiley. Yusof, S. A. 2008. “The Long-Run and Dynamic Behaviors of Wages, Productivity and Employment in Malaysia.” Journal of Economic Studies 35 (3): 249–262.
Williams, R. (1970). Income, Leisure and the Allocation of Time. Review of Economics and Statistics, 52(3), 326–332.
Zaman, Z., Ali, Z., & Farooq, U. (2015). Investigation co Integration with Structural Breaks in Inflation, Real Wages and Productivity. An International Peer-Reviewed Journal, 12. www.iiste.org
