PENGUJIAN MODEL ALTERNATIF PENAWARAN TENAGA KERJA STUDI KASUS PENGEMUDI TAKSI DI KOTA SURABAYA

Abstract

This study aimed to test the hypothesis of labor supply response to changes in wages in Indonesia. The hypotheses tested are neoclassical hypothesis or reference dependent hypothesis from prospect theory. Neoclassical hypothesis indicated by positive labor supply elasticity, while the reference dependent hypothesis is indicated by negative labor supply elasticity. The data used is a panel data of 75 taxi drivers in Surabaya, with observation 5 working days for each driver. Estimation technique used was PLS, Fixed Effects and Instrumental variable. The instrumental variables estimation techniques allow overcoming the problems of measurement error. The estimation results find that reference dependent does exist on the overall study sample. In the sub-sample of the driver with the partnership system was found to have more negative elasticity