Efek Peningkatan Upah Minimum Terhadap Tingkat Pengangguran

Abstract

: This research aims to analyze the determinants of unemployment rate in Surakarta Residency. The analytical method used in this study is panel data regression. Data panel is a combination of cross section that includes seven regencies in Surakarta and time series during 15 years from 1999-2013. The results showed that Fixed Effects Model (FEM) is the most ap­propriate. Based on simultaneous test, minimum wage, Gross Domestic Product (GDP), infla­tion, and the number of population simultaneously have an impact on the unemployment rate. Based on the effect validity test, the minimum wage and population has significant positive effect on the unemployment rate, Gross Domestic Product (GDP) has significant negative effect on the unemployment rate, while inflation does not have significant effect on the unem­ployment rate