Determinants Of Labor Productivity In West Nusa Tenggara Province (Ntb)
DOI:
https://doi.org/10.21111/at.v11i2.15686Keywords:
poverty, labor productivity, open unemployment rate, minimum wageAbstract
This study examines the determinants of labor productivity at the regency and municipal levels in West Nusa Tenggara Province over the period 2019–2024. The variables analyzed include the Regency/Municipal Minimum Wage (RMMW), the Open Unemployment Rate (OUR), and the Percentage of the Poor Population (PPP). Panel data covering ten regencies/municipalities were employed and analyzed using panel data regression with EViews 12. Model selection was conducted through the Chow test and the Hausman test, both of which indicated that the Random Effects Model was the most appropriate specification. The empirical findings reveal that the minimum wage has a positive but statistically insignificant effect on labor productivity. In contrast, the open unemployment rate exerts a negative and statistically significant effect, while the percentage of the poor population shows a negative but insignificant relationship with labor productivity. Simultaneously, the three variables do not have a statistically significant joint effect on labor productivity. These results suggest that despite the upward trend in minimum wages across regencies and municipalities, labor productivity remains largely shaped by labor market conditions and interregional disparities in poverty levels. The study highlights the importance of region-specific employment policies, particularly those aimed at improving human capital quality, expanding productive employment opportunities, and strengthening value-added sectors to enhance labor productivity in West Nusa Tenggara Province.References
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