{"id":3380,"date":"2018-12-24T09:30:53","date_gmt":"2018-12-24T07:30:53","guid":{"rendered":"http:\/\/www.rsijournal.eu\/?p=3380"},"modified":"2018-12-24T09:30:53","modified_gmt":"2018-12-24T07:30:53","slug":"the-macroeconomic-impact-of-regional-minimum-wages-a-cross-province-data-evidence-from-indonesia","status":"publish","type":"post","link":"https:\/\/rsijournal.eu\/?p=3380","title":{"rendered":"THE MACROECONOMIC IMPACT OF REGIONAL MINIMUM WAGEs: A CROSS-PROVINCE DATA EVIDENCE FROM INDONESIA"},"content":{"rendered":"<h2>Khairul AMRI<\/h2>\n<h3>Ph.D Student in Economic Science, Faculty of Economic and Business Syiah Kuala University Banda Aceh, Indonesia, Lecture in Faculty of Islamic Economics and Business, State Islamic University Ar-Raniry, Banda Aceh Indonesia<\/h3>\n<h3>khairul.amri@ar-raniry.ac.id<\/h3>\n<p><strong>Abstract<\/strong><\/p>\n<p>The main purpose of our study is to determine the causality relationship between economic growth, regional minimum wages (RMWs), unemployment rate and labor force participation rate (LFP). Using cross-section data set of 27 provinces from Indonesia for the period of 2003-2015, data analyzed using panel co-integration test, panel vector error correction model, and Granger causality test. Panel co-integration test indicates that there is a long-run relationship between the variables. In the long-run, LFP positively related to the economic growth, and negatively related to RMWs. The unemployment is positively related to both the economic growth and RMWs. In the short-run, RMWS has a significant and positive effect on economic growth. The unemployment and LFP have a negative and significant effect on RMWs. LFP has a negative and significant effect on unemployment and RMWs has a positive and significant effect on LFP. Furthermore, economic growth has a negative and significant effect on LFP. The result of Granger causality test points out that there is a bidirectional causality relationship between economic growth and RMWs and between RMWs and LFP. In addition, unemployment rate causes RMWs, and LFP causes unemployment.<\/p>\n<p><strong>Keywords:<\/strong> Economic growth, regional minimum wages, labor force participation, unemployment and panel vector error correction model<\/p>\n<p><strong>JEL classification: <\/strong>J31, O4, R23<br \/>\n<em><a href=\"http:\/\/www.rsijournal.eu\/ARTICLES\/December_2018\/12.pdf\" target=\"_blank\">read more<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Khairul AMRI Ph.D Student in Economic Science, Faculty of Economic and Business Syiah Kuala University Banda Aceh, Indonesia, Lecture in Faculty of Islamic Economics and Business, State Islamic University Ar-Raniry, Banda Aceh Indonesia khairul.amri@ar-raniry.ac.id Abstract The main purpose of our study is to determine the causality relationship between economic growth, regional minimum wages (RMWs), unemployment&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[181],"tags":[252,786,790,787,788,789,791],"class_list":["post-3380","post","type-post","status-publish","format-standard","hentry","category-published","tag-economic-growth","tag-j31","tag-labor-force-participation","tag-o4","tag-r23","tag-regional-minimum-wages","tag-unemployment-and-panel-vector-error-correction-model"],"_links":{"self":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/3380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3380"}],"version-history":[{"count":1,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/3380\/revisions"}],"predecessor-version":[{"id":3381,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/3380\/revisions\/3381"}],"wp:attachment":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}