Determinan Pengangguran Jawa Barat 2020-2024 Dengan Pandemi COVID-19 Sebagai Dummy dan Interaksi: (Determinan Pengangguran Jawa Barat 2020-2024 Dengan Pandemi COVID-19 Sebagai Dummy dan Interaksi)

Imamah Shabrina; Prayudi Setiawan Prabowo

doi:10.26740/independent.v6i2.75803

Authors

Imamah Shabrina Universitas Negeri Surabaya
Prayudi Setiawan Prabowo Universitas Negeri Surabaya

DOI:

https://doi.org/10.26740/independent.v6i2.75803

Keywords:

Unemployment, Minimum Wage, Domestic Investment, Labor Force Participation Rate, Economic Growth, Pandemic Dummy

Abstract

The persistently high unemployment rate in West Java Province, despite being a national industrial hub, indicates structural problems in the labor market that have become increasingly complex due to the COVID-19 pandemic. This study focuses on the influence of the minimum wage, domestic investment, the Labor Force Participation Rate (LFPR), and economic growth on unemployment, both before and during the pandemic, while also considering the interaction of wage subsidy policies implemented over the 2020–2024 period. The research adopts a quantitative approach using panel data regression across 27 districts and cities in West Java through three model specifications. The findings reveal that prior to the pandemic, minimum wages had no significant effect on unemployment, while domestic investment showed a significant positive impact, whereas LFPR and economic growth were not significant. During the pandemic period, the COVID-19 variable significantly increased unemployment, with other variables remaining relatively stable. After the implementation of wage subsidy policies, LFPR had a significant negative effect on unemployment, while domestic investment became insignificant. Overall, the results emphasize the crucial role of the pandemic and labor policy dynamics in influencing unemployment in West Java.

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