Analysis Of Factors Affecting The Labor Force Participation Rate (LFPR) In Central Java
DOI:
https://doi.org/10.59944/postaxial.v4i3.1812Keywords:
LFPR, education, wage, economic growthAbstract
The number of working-age individuals who are actively engaged in economic activities, whether they are already employed or seeking employment, is known as the labor force participation rate. A high labor force participation rate indicates that a significant number of people have reached working age and can support the country's economy. Average years of education, minimum wage, and economic growth are some of the variables that influence the labor force participation rate. The aim of this research is to investigate how the minimum wage, average years of education, and economic growth affect the labor force participation rate in Central Java Province between 2017 and 2023. This study uses a quantitative approach with secondary data sources from BPS. The analysis model of this study employs multiple linear regression analysis (OLS), and the Fixed Effects Model (FEM) is used to estimate the model. The data in this research is processed using Stata 64 software. The R2 value of this study is 0.1517, which means that the average years of education, minimum wage, and economic growth have an impact of 15.17% on the labor force participation rate (LFPR); other models outside of this model contribute the remaining 74.83%. The results of this study indicate that although the three variables used, namely average years of education, minimum wage, and economic growth, have a beneficial impact on the labor force participation rate (TPAK), they are not statistically significant. However, collectively, these three variables have an impact on the LFPR in Central Java Province from 2017 to 2023.
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