Determinants of Labor Force Participation in the Agricultural Sector: Evidence from Maluku Province, Indonesia
DOI:
https://doi.org/10.21111/ibmj.v8i2.15321Keywords:
Labor Force Participation, Agricultural GRDP, Land Area, Minimum Wage, Agricultural Sector, Maluku Province.Abstract
This study examines the key determinants influencing labor force participation in the agricultural sector of Maluku Province during the period 2015–2024. The research focuses on three main variables: agricultural Gross Regional Domestic Product (GRDP), agricultural land area, and provincial minimum wage. The agricultural sector in Maluku plays a vital role in absorbing the labor force, particularly in rural areas, yet it continues to face challenges such as land conversion, mechanization, and price fluctuations. Employing a quantitative approach, this study utilizes multiple linear regression analysis to evaluate the impact of these variables on labor force participation in the agricultural sector. The empirical findings reveal that agricultural GRDP, agricultural land area, and provincial minimum wage have a significant effect—both partially and simultaneously—on the level of labor force participation. These results underscore the strategic importance of strengthening regional economic policies aimed at improving agricultural productivity, labor absorption, and rural welfare in Maluku Province.References
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