The Effect of the Open Unemployment Rate and Minimum Wage on Poverty in Sabang City
DOI:
https://doi.org/10.30601/humaniora.v9i2.7326Keywords:
Open Unemployment Rate, Minimum Wage, Poverty, Multiple Linear Regression, Sabang CityAbstract
This study examines the effect of the open unemployment rate and the minimum wage on poverty in Sabang City, Aceh Province, Indonesia. The study used a quantitative approach with annual secondary time-series data for 2000–2024 (n = 25) obtained from Statistics Indonesia (BPS). The data were analyzed using multiple linear regression with t-tests and an F-test at a 5% significance level. The results show that the open unemployment rate and the minimum wage simultaneously have a significant effect on poverty in Sabang City, as indicated by a calculated F-value of 41.235, which is greater than the F-table value of 3.443 (sig. 0.000). Partially, the open unemployment rate has a positive and significant effect on poverty, with a coefficient of 0.209 and a calculated t-value of 2.348, which is greater than the t-table value of 2.074 (sig. 0.021). The minimum wage also has a positive and significant effect on poverty, with a coefficient of 0.417 and a calculated t-value of 5.346 (sig. 0.000). The coefficient of determination (R²) is 74.2%, meaning that 74.2% of the variation in poverty in Sabang City is explained by the open unemployment rate and the minimum wage, while the remaining 25.8% is explained by other factors outside the model. The positive effect of the minimum wage indicates that minimum wage increases in Sabang City have not been sufficient to reduce poverty, possibly because many workers are in the informal sector. The study recommends expanding employment and skills training programs and setting the minimum wage in line with decent living needs and local economic conditions.Downloads
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