DISTRICT MINIMUM WAGE AND ITS IMPACT ON COMPANY RELOCATION, UNEMPLOYMENT AND EXTREME POVERTY
Puji Isyanto, Dedi Mulyadi, Uus MD Fadli

Management Study Program, Faculty of Economics and Business
Universitas Buana Perjuangan, Karawang, West Java, Indonesia

Abstract

Determining district minimum wages often becomes a problem every year even though there are clear regulations. The district minimum wage always becomes a dilemma if it is determined that the increase is too large and too small even if there is no increase. High and low wages will affect the supply and demand for labour which will ultimately impact the relocation of companies and the number of unemployed and even impact poverty.
The aim of this research is to examine and analyze the impact of the district minimum wage, company relocation, unemployment and extreme poverty. The research method uses quantitative methods with descriptive statistical analysis tools and multiple linear regression analysis of panel data. Research data uses secondary data and combines data from interviews and field observations at companies, associations or institutions that issue official and valid data.
Based on the results of this research, it shows that the district minimum wage value has quite a significant influence on the impact of company relocation and unemployment, both partially and simultaneously, but does not have a significant influence on the impact of extreme poverty.

Keywords: district minimum wage, company relocation, unemployment, extreme poverty.

Topic: Economics