Analysis of Variables Determining Labor Absorption in Micro and Small Industries on the Island of Java
DOI:
https://doi.org/10.22219/jie.v8i03.32805Keywords:
Micro and small industry, Number of industries, Production value, Labor AbsorptionAbstract
Micro and small industries play a crucial role in economics. This research aims to determine the magnitude of the roles of micro and small enterprises in labour absorption on the islands of Java. The data analysis method uses panel data analysis with a random-effects model. The type of data in this research is panel data, namely a combination of cross-section and time-series data covering six provinces on the islands of Java in 2017-2022. The research results show that the variables of several industries and the production value of micro and small enterprises have a positive and significant effect on labour absorption on the islands of Java.
Downloads
References
Aminy, A. (2022). Analysis of the Role of MSMEs in the East Java Economy. Mahardhika Media Journal .
Aroda , N. I. (2021). Labour Absorption in The Small and Micro Industries of Food and Beverages in Limpung Sub-District, Batang District. Business and Economic Analysis Journal, 1 (1), 38–49. https://doi.org/10.15294/beaj.v1i1.30144
Baltagi , B. H. (2005). Econometric Analysis of Panel Data Third edition.
Jaya , RDR, Ibrahim, MT, & Happy, WN (2021). Analysis of the Influence of the Number of Industries, Population, and Investment Value of the Small Industry and Non-Formal Manufacturing Sectors in the City of Palembang. In SIBATIK JOURNAL | VOLUME (Vol. 1, Issue 1). https://publish.ojs-indonesia.com/index.php/SIBATIK
Fadel , M., Mallongi , S., & Selong , A. (2021). The Influence of Investment and Production Value on Labor Absorption in the Industrial Sector in Makassar City. In Center of Economic Student Journal (Vol. 4, Issue 2).
Fauziah , IN, Mukhtar, S., & Nurjanah , S. (2021). The Effect of the Number of Industrial Companies, Investments, and the Economic Crisis on the Realization of Labor Absorption in the Middle Medium Textile Industry Sector in East Java Province 2006-2018. Journal of Economic, Office and Accounting Education. https://doi.org/10.21009/JPEPA.007.xx
Ghozali , I., & Ratmono, D. (2013). Multivariate Analysis and Econometrics theory, concepts, and applications with reviews 8. Diponegoro University Publishing Agency.
Haedzar P, R., Sri Yani Kusumastuti, Erista Nurfianingrum, & Syafri. (2022). Labour Absorption in the Manufacturing Industry Sector in Central Java Province Indonesia. Asian International Journal of Business, 1 (1), 59–67. https://doi.org/10.54099/aijb.v1i1.73
Jannah , EM, Rachmadhan , AA, Meidaliyantisyah , M., & Hendra, J. (2021). The Labor Force Absorption Improvement of Micro and Small Enterprises (MSEs) in Indonesia. Journal of Economics and Development Studies, 13 (1), 72. https://doi.org/10.17977/um002v13i12021p072
Kuncoro, H. (2002). Profit Sharing System Wages and Labor Absorption. In JEP (Vol. 7, Issue 1).
Maksimilianus Gai, A., Poerwati , T., Marito, M., Aswadi , D., & Hernawan , MA (2023). The Influence of the Number of Industries, Nominal Wages of Labor and Educational Background on Employment Absorption in Medium and Large Industries Sector in Indonesia. Journal of Citizenship, 7 (2), 2598.
Mankiw , N. G. (2007). Macroeconomics. Erlangga.
Nababan , T.S. (2017). The Effects of Number of Industrial Enterprises, Value of Input, Value of Output, And Regional Minimum Wage on Labor Demand in Indonesia: An Empirical Study on Micro Industrial Enterprises.
Pokrovskii , V. N. (2012). Production of Value.
Pramusinto , ND, & Daerobi , A. (2020). Labour Absorption of the Manufacturing Industry Sector in Indonesia. Budapest International Research and Critics Institute ( BIRCI-Journal): Humanities and Social Sciences, 3 (1), 303–310. https://doi.org/https://doi.org/10.33258/birci.v3i1.769
Prihatini , D., Wibisono , S., & Wulantari , RN (2020). Determinants of Labor Absorption in Indonesia 2011-2015. E-Journal of Business Economics and Accounting, VII (1), 36–41.
Putri , E., Setyowati, E., & Rosyadi, I. (2022). The Influence of Gross Domestic Product (GRDP), City/Regency Minimum Wage (UMK), and Human Development Index (HDI) on Labor Absorption in Central Java Province 2016-2019. Economics: Journal of Economics and Business, 6 (2), 651. https://doi.org/10.33087/ Ekonomis.v6i2.594
Shao, Y. (2022). The Output Value Prediction Model of Regional Fitness and Leisure Industry. International Journal of Frontiers in Sociology, 4 (3). https://doi.org/10.25236/ijfs.2022.040306
Simanjuntak , PJ (2001). Introduction to Human Resource Economics. Publishing Institution Faculty of Economics, University of Indonesia.
Sumarsono , S. (2003). Economic management resource people and employment. House Knowledge.
Uma , R., & Anbuselvi, R. (2023). Role of Micro Small and Medium Enterprises (MSME) in Employment Generation in India. Shanlax International Journal of Economics, 11 (2), 22–27. https://doi.org/10.34293/economics.v11i2.5809
Vomberg , A., & Wies, S. (2021). Panel Data Analysis: A Nontechnical Introduction for Marketing Researchers. In Handbook of Market Research (pp. 1–58). Springer International Publishing. https://doi.org/10.1007/978-3-319-05542-8_19-1
Wulansari , RA (2021). Influence Number of Companies, Capital, and Production Value To Absorption of Labor in Small Industries and Household Crafts in the Regency Tuban. Social Indonesian Journal Technology, 2.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Fika Chairunisa Azhari, Ida Nuraini
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- For all articles published in the JIE (Jurnal Ilmu Ekonomi), copyright is retained by the authors. Authors give permission to the publisher to announce the work with conditions. When the manuscript is accepted for publication, the authors agree to the automatic transfer of non-exclusive publishing rights to the publisher.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
This is an open access article and licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License