Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)

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Analysis of Labor Absorption in the Agricultural Sector in Indonesia

Authors
Tatik Nur Tri Ani1, Nur Hidayah1, *
1Faculty of Economics and Business, Muhammadiyah University of Surakarta, Surakarta, Indonesia
*Corresponding author. Email: nh212@ums.ac.id
Corresponding Author
Nur Hidayah
Available Online 4 October 2023.
DOI
10.2991/978-94-6463-204-0_14How to use a DOI?
Keywords
Absorption of Labor Agricultural Sector; Farmers Exchange Rate; Provincial Minimum Wage; Fixed Effects Model (FEM)
Abstract

This study examines the factors that affect the absorption of labor in the agricultural sector. The variables in this study consisted of the Gross Regional Domestic Product (GRDP) of the Agricultural Sector, Farmers Exchange Rate (FER), Domestic Investment, and the Provincial Minimum Wage (PMW). This research method uses panel data regression analysis with Fixed Effects Model (FEM) to analyze panel data from 2019 to 2021 in 34 provinces in Indonesia. In this research, we found that the Farmer’ Exchange Rate has a negative and significant influence and the Provincial Minimum Wage has a positive and significant influence on the absorption of labor in agricultural sector. Meanwhile, the Gross Regional Domestic Product of the Agricultural Sector and Domestic Investment variable have no influence on the absorption of labor. This study is the first study to examine the influence of gross regional domestic product, farmers exchange rates, provincial minimum wages, and domestic investment on absorption of labor in agricultural sector in 34 provinces in Indonesia from 2019 to 2021.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)
Series
Advances in Economics, Business and Management Research
Publication Date
4 October 2023
ISBN
10.2991/978-94-6463-204-0_14
ISSN
2352-5428
DOI
10.2991/978-94-6463-204-0_14How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Tatik Nur Tri Ani
AU  - Nur Hidayah
PY  - 2023
DA  - 2023/10/04
TI  - Analysis of Labor Absorption in the Agricultural Sector in Indonesia
BT  - Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)
PB  - Atlantis Press
SP  - 160
EP  - 170
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-204-0_14
DO  - 10.2991/978-94-6463-204-0_14
ID  - Ani2023
ER  -