Research Article
Analysis of the Minimum Wage and Production Effect on Employment of Oil Palm Plantation Sector in Sumatra
@INPROCEEDINGS{10.4108/eai.24-11-2022.2332718, author={Ainul Mardhiyah and Sya’ad Afifuddin and Irsad Irsad and Dede Ruslan}, title={Analysis of the Minimum Wage and Production Effect on Employment of Oil Palm Plantation Sector in Sumatra}, proceedings={Proceedings of the 4th International Conference on Science Education in The Industrial Revolution 4.0, ICONSEIR 2022, November 24th, 2022, Medan, Indonesia}, publisher={EAI}, proceedings_a={ICONSEIR}, year={2023}, month={6}, keywords={labor absorption minimum wage production}, doi={10.4108/eai.24-11-2022.2332718} }- Ainul Mardhiyah
Sya’ad Afifuddin
Irsad Irsad
Dede Ruslan
Year: 2023
Analysis of the Minimum Wage and Production Effect on Employment of Oil Palm Plantation Sector in Sumatra
ICONSEIR
EAI
DOI: 10.4108/eai.24-11-2022.2332718
Abstract
Oil palm is a commodity that has an important role in the Indonesian economy as a leading commodity, its role tends to increase year by year. This study aimed to examine Pappas and Mark Hirshey’s demand theory derivation in the oil palm plantation sector in Sumatra Island, employment in the oil palm plantation sector is a derived demand for labor, because the demand is based on the plantation sector developments in Sumatra. This study looked at the effect of the minimum wage and production variables on employment in the oil palm plantation sector on the island of Sumatra. This study used time series data from 2011 to 2020 per 10 provinces on the island of Sumatra. The data analysis technique used is multiple linear regression with the EViews application. After the examination was carried out, the result showed that the Minimum Wage (MW) has negative and insignificant effect towards employment so that the hypothesis is accepted. Production has positive and significant effect towards employment so that the hypothesis is accepted. Simultaneously the Minimum Wage (MW) and production affect employment so that the hypothesis is accepted.