DAMPAK UPAH MINIMUM TERHADAP PENYERAPAN TENAGA KERJA SEKTOR FORMAL DAN INFORMAL: ANALISIS SPASIAL

Muh. Nuhradi, Diah Widyawati

Abstract


There is possibility of bias in previous study about impact of minimum wages on labor absorption in formal and informal sectors because it has not yet accommodated the spatial effects of inter-regional labor market dependencies. This study aims to examine impact increasing of minimum wage on labor absorption in formal and informal sector without spatial effects then compared with if there are spatial effects. Without spatial effect, the model used is panel model and with spatial effect, model used is Panel Spatial Auto-Regressive model. The dependent variable used is labor absorption in formal sector relative to informal sector, whereas the independent variable is the real minimum wage in the form of the natural logarithm. The result of both models showed that increasing of minimum wage significantly reduced the labor absorption of formal sector relative to informal sector. Coefficient value of the impact increasing of minimum wage produced by the spatial model is greater than the non-spatial model whereas from the model criteria results show better spatial model, so it can be concluded there is underestimate in the previous study which does not take into account the spatial dependencies of the labor market.


Keywords


Sektor Formal; Sektor Informal; Penyerapan tenaga kerja; Spasial; SAR; Upah minimum

Full Text:

PDF

References


Akaike, H. (1981). Likelihood of A Model and Information Criteria. Journal of Econometrics, 16, 3–14. https://doi.org/10.1111/j.1558-5646.2010.01217.x

Alatas, V., & Cameron, L. (2013). The Impact of Minimum Wages on Employment in a Low Income Country: An Evaluation using the Difference-in-Differences Approach. Journal of Chemical Information and Modeling, 53(9), 1689–1699. https://doi.org/10.1017/CBO9781107415324.004

BPS. (2017). Indikator Pasar Tenaga Kerja Indonesia Agustus 2017.

Chun, N., & Khor, N. (2010). Minimum wages and changing wage inequality in Indonesia. ADB Economics Working Paper Series, 196(196), 1–35.

Del Carpio, X., Nguyen, H., Pabon, L., & Wang, L. C. (2015). Do minimum wages affect employment? Evidence from the manufacturing sector in Indonesia. IZA Journal of Labor and Development, 4(1). https://doi.org/10.1186/s40175-015-0040-8

Dolton, P., Bondibene, C. R., & Stops, M. (2015). Identifying the employment effect of invoking and changing the minimum wage: A spatial analysis of the UK. Labour Economics, 37, 54–76. https://doi.org/10.1016/j.labeco.2015.09.002

Dube, A., Lester, T. W., & Reich, M. (2010). Minimum wage effects across state borders: estimates using contiguous counties, 92(November), 945–964.

El Hamidi, F., & Terrell, K. (2002). The Impact of Minimum Wages on Wage Inequality and Employment in the Formal and Informal Sector in Costa Rica. SSRN Electronic Journal, (479). https://doi.org/10.2139/ssrn.323363

Fajnzylber, P. R. (2001). Minimum Wage Effects Throughout the Wage Distribution: Evidence from Brazil’s Formal and Informal Sectors. SSRN Electronic Journal. CEDEPLAR Working Paper No. 151, 57. https://doi.org/10.2139/ssrn.269622

Gibbons, S., & Overman, H. G. (2012). Mostly pointless spatial econometrics? Journal of Regional Science, 52(2), 172–191. https://doi.org/10.1111/j.1467-9787.2012.00760.x

Gindling, T. H., & Terrell, K. (2007). The effects of multiple minimum wages throughout the labor market: The case of Costa Rica. Labour Economics, 14(3), 485–511. https://doi.org/10.1016/j.labeco.2006.01.004

Gramlich, E. M. (1976). Wages Family on of Minimum Other Employment , and In comes. Brookings Papers on Economic Activity, 2, 409–461. Retrieved from http://www.jstor.org/stable/2534380

Greene, W. H. (2002). Econometric Analysis (Fifth Edit). New Jersey.

Hohberg, M., & Lay, J. (2015). The impact of minimum wages on informal and formal labor market outcomes: evidence from Indonesia. IZA Journal of Labor & Development, 4(1), 14. https://doi.org/10.1186/s40175-015-0036-4

Islam, I., & Nazara, S. (2000). Minimum wage and the welfare of Indonesian workers. ILO Jakarta Office. International Labour Organization Jakarta Office.

Kalenkoski, C. M., & Lacombe, D. J. (2008). Effects of minimum wages on youth employment: The importance of accounting for spatial correlation. Journal of Labor Research, 29(4), 303–317. https://doi.org/10.1007/s12122-007-9038-6

Kalenkoski, C. M., & Lacombe, D. J. (2012). Minimum wages and teen employment: A spatial panel approach. Papers in Regional Science, 92(2), 407–417. https://doi.org/10.1111/j.1435-5957.2012.00453.x

Le Sage, J., & Pace, R. (2009). Introduction to spatial econometrics.

Lemos, S. (2004). The Effects of the Minimum Wage in the Private and Public Sectors in Brazil. IZA Discussion Paper, (1089). https://doi.org/10.1080/00220380701259947

Lemos, S. (2009). Minimum wage effects in a developing country. Labour Economics, 16(2), 224–237. https://doi.org/10.1016/j.labeco.2008.07.003

Magruder, J. R. (2013). Can minimum wages cause a big push? Evidence from Indonesia. Journal of Development Economics, 100(1), 48–62. https://doi.org/10.1016/j.jdeveco.2012.07.003

Maloney, W., & Mendez, J. (2004). Measuring the impact of minimum wages. Evidence from Latin America. Law and Employment: Lessons from Latin America and the Caribbean, (August), 109–130. https://doi.org/10.1016/j.worlddev.2005.04.017

Mello, L. De, & Comola, M. (2010). How Does Decentralised Minimum-Wage Setting Affect Unemployment and Informality? The Case of Indonesia. Review of Income and Wealth, 57, 1–31. https://doi.org/10.1787/222850046464

Mincer, J. (1976). Unemployment Effects of Minimum Wages. Journal of Political Economy. https://doi.org/10.1086/260534

Nazara, S. (2010). Ekonomi Informal di Indonesia: Ukuran, Komposisi, dan Evolusi. Organisasi Perburuhan Internasional. https://doi.org/Data Publikaso ILO

Rama, M. (2001). The consequences of doubling the minimum wage: The case of indonesia. Industrial and Labor Relations Review, 54(4), 864–881. https://doi.org/10.1177/001979390105400407

Riyadi, N. W. S. (2014). Minimum Wage And The Indonesian Labor Market. Universitas Indonesia.

Suryahadi, A., Widyanti, W., Perwira, D., & Sumarto, S. (2003). Minimum wage policy and its impact on employment in the urban formal sector. Bulletin of Indonesian Economic Studies, 39(1), 29–50. https://doi.org/10.1080/00074910302007

Welch, F. (1974). Minimum Wage Legislation in the United States. Economic Inquiry, 12(3), 285–318. https://doi.org/10.1111/j.1465-7295.1974.tb00401.x




DOI: http://dx.doi.org/10.35448/jequ.v9i1.5442

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 Jurnal Ekonomi-Qu

 

Jurnal Ekonomi-Qu is licensed under a Creative Commons Attribution 4.0 International License

Contact Person:
Sugeng Setyadi
Department of Economics
Faculty of Economics dan Business
Universitas Sultan Ageng Tirtayasa
Address: Jl. Raya Palka Km 3 Sindangsari, Pabuaran, Kab. Serang, Banten 42163
Cell Phone: +6282122028968
Phone: +62254 280330 ext 125
E-mail: [email protected]
E-mail (personal): [email protected]