The Impact of Minimum Wages on Investment and Employment in Indonesia
IDEC DP2 Series Volume 4 Issue 6
Page 1-20
published_at 2014-09
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この文献の参照には次のURLをご利用ください : https://doi.org/10.15027/36104
| File | |
| Title ( eng ) |
The Impact of Minimum Wages on Investment and Employment in Indonesia
|
| Creator |
Andi Sukmana
|
| Source Title |
IDEC DP2 Series
|
| Volume | 4 |
| Issue | 6 |
| Start Page | 1 |
| End Page | 20 |
| Abstract |
The labor market in Indonesia cannot absorb all of the labor force available, which allows employers to have greater bargaining power over employees. To protect and to increase labor welfare, the government issued minimum wages regulation. Although the purposes of the minimum wage policy were widely accepted, there is great disagreement about whether the minimum wage is effective in achieving its objectives.
We found that the minimum wage policy in Indonesia has a positive impact on the average wage. 1 percent of the increase of the minimum wage will increase the average wage by 0.71-0.98 percent. The minimum wage has a negative impact on employment to the working age population ratio. 1 percent of the increase of the minimum wage will decrease the employment to population ratio by 0.62?0.76 percent. The minimum wage only affects total investment. Total investment will decrease 0.09% if the minimum wage increases by 1%. |
| Keywords |
average wage
employment
investment
labor
minimum wage
|
| NDC |
Society [ 360 ]
|
| Language |
eng
|
| Resource Type | departmental bulletin paper |
| Publisher |
広島大学大学院国際協力研究科
|
| Date of Issued | 2014-09 |
| Publish Type | Version of Record |
| Access Rights | open access |
