VOlUME 06 ISSUE 07 JULY 2023
1Joko Susanto,2Didit Welly Udjianto,3Windyastuti
1,2,3Faculty of Economics and Business UPN Veteran Yogyakarta, Jalan Padjadjaran, Depok, Sleman, Yogyakarta Special Region
DOI : https://doi.org/10.47191/ijsshr/v6-i7-74Google Scholar Download Pdf
ABSTRACT
Immigration is associated with an effort to get a better living. Therefore, this research analyzes whether the high minimum wage attracts immigrants. This study utilizes secondary data from Indonesian Statistics that cover the condition of immigrants in Java, an island with the highest population density. In this research, the proportion of immigrants is the dependent variable. At the same time, the minimum wage is the independent variable and the percentage of formal jobs and prosperity as covariates. The secondary data is analyzed by regression based on Fully Modified Ordinary Least Squares (FMOLS). This regression analysis is complemented by primary data through questionnaires sent to some economic experts. The primary data is analyzed by Delphi Method. The regression result shows no association between the proportion of immigrants and minimum wage. A high minimum wage does not attract people to enter an area. At the same time, a percentage of formal jobs and prosperity attract people to immigrate. In addition, the Delphi analysis exhibits similar results. The expert’s opinion about the impact of minimum wage is not convergence. Not all experts agree that migrant considers the high minimum wage. However, all experts agree that formal jobs, infrastructure, prosperity, amenities, and living costs have an impact on immigrants.
KEYWORDS:immigrant, minimum wage, formal sector, prosperity
REFERENCES
1) Kumpikaitė V. Migration as the Way for Better Employment Perspectives: Case of European Union. Int J Soc Sci Humanit. 2016;6(9):728–33.
2) Andina E. Peran Pemerintah Daerah dalam Implementasi Program Kartu Prakerja di Provinsi Jawa Barat. Aspir J Masal Masal Sos. 2022;13(1):37–57.
3) Schnabel C. Low-Wage Employment. IZA World Labor. 2016;(January).
4) Cai L. State-Dependence and Stepping-Stone Effects of Low-Pay Employment in Australia. Econ Rec. 2014;90(291):486−506.
5) Popova Y. Relations between Wellbeing and Transport Infrastructure of the Country. Procedia Enginering. 2017;178:579–88.
6) Izzaty, Sari R. Kebijakan Penetapan Upah Minimum di Indonesia. J Ekon Kebijak Publik. 2013;4(2):131–45.
7) Udin, Handayani S, Yuniawan A. Does Money Motivate People?: A Summary of Issues and Discussion Points. J Eng Appl Sci. 2018;13(12):4320–3.
8) Khemissi F, Chebbi T. Impact of the efficiency wage on the motivation of employees within companies. Int J Adv Appl Sci. 2022;9(1):41–7.
9) Banfi S, Villena-Roldán B. Do High-Wage Jobs Attract more Applicants? Directed Search Evidencefrom the Online Labor Market. J Labor Econ. 2019;37(3):715-746.
10) Setyanti A. Informality and the Education Factor in Indonesian Labor. J Indones Appl Econ. 2020;8(2):71–80.
11) Awan A., Anum V. Impact of Infrastructure Development on Economic Growth: a Case Study of Pakistan. Int J Dev Econ Dev [Internet]. 2014;2(5):1–15. Available from: www.eajournals.org
12) Manag Soc Sci Res. 2013;2(1):81–91.
13) Djanggo RTPM, Tamberan YW, Tawakal MA, Risamasu PIM, Nahumury MAI, Kadir AR. Development of Infrastructure Related with Community Welfare. IOP Conf Ser Earth Environ Sci. 2020;473(1):1–12.
14) Wang-Lu H, Mendoza V, Miguel O. Job Prospects and Labour Mobility in China. J Int Trade Econ Dev [Internet]. 2022;1–45. Available from: https://doi.org/10.1080/09638199.2022.2157463
15) Pardede EL, McCann P, Venhorst VA. Internal migration in Indonesia: new insights from longitudinal data. Asian Popul Stud [Internet]. 2020;16(3):287–309. Available from: https://doi.org/10.1080/17441730.2020.1774139
16) Cadena BC. Native Competition and Low-Skilled Immigrant Inflows. J Hum Resour. 2013;48(4):910–44.
17) Boffy-Ramirez E. Minimum Wages, Earnings, and Migration. IZA J Migr. 2013;2(1):1–24.
18) Giulietti C. Is the Minimum Wage a Pull Factor for Immigrants? Ind Labor Relations Rev. 2014;67(3):649–674.
19) Maulida Y. Pengaruh Tingkat Upah Terhadap Migrasi Masuk di Kota Pekanbaru. J Ekon Univ Riau. 2013;21(02):1–12.
20) Strobl E, Walsh F. Monopsony, Minimum Wages and Migration. Labour Econ. 2016;42 (C):221–37.
21) Tarigan WMB, Suharto RB, Roy J. Faktor-Faktor yang Mempengaruhi Migrasi Masuk Risen. J Ilmu Ekon Mulawarman. 2017;2(4):1–14.
22) Paramita R. Menilik Upah Minimum dan Ketimpangan. J Budg. 2021;6(2):184–200.
23) Kumar M, Ranjan R. Wage Differential between Informal and Formal Wage Worker in India. Acad J Econ Stud. 2015;1(4):9–19.
24) Verhaest D, Adriaenssens S. Compensating Wage Differentials in Formal and Informal Jobs. Kyklos. 2022;75(1):106–26.
25) Sari NP. Transformasi Pekerja Informal ke Arah Formal: Analisis Deskriptif dan Regresi Logistik. J Ekon Kuantitatif Terap. 2016;9(1):28–36.
26) Manning C, Pratomo DS. Do Migrants Get Stuck in the Informal Sector? Findings from a Household Survey in Four Indonesian Cities. Bull Indones Econ Stud. 2013;49(2):167–192.
27) Revoltella D, Brutscher P-B, Tsiotras A, Weiss CT. Linking Local Business with Global Growth Opportunities: The Role of Infrastructure. Oxford Rev Econ Policy. 2016;32(3):410–30.
28) Sawada Y. Infrastructure Investments, Technologies and Jobs in Asia. Int J Train Res [Internet]. 2019;17(sup1):12–25. Available from: https://doi.org/10.1080/14480220.2019.1629724
29) Grace G. Factors Affecting Inward Foreign Direct Investment: Case of Asean Countries. Info Artha. 2019;3(2):119–32.
30) Wang Z, Wu GL, Feng Q. Productivity of Core Infrastructure Investment in China: An Input–Output Approach. World Econ. 2020;43(2):3384–406.
31) Arize AC, Malindretos J, Ghosh D. Purchasing Power Parity-Symmetry and Proportionality: Evidence from 116 Countries. Int Rev Econ Financ. 2015;37(C):69–85.
32) Villarreal A, Sarah B. How Job Characteristics Affect International Migration: The Role of Informality in Mexico. Demography. 2013;50(2):751–75.
33) Amini AF, Sugiharti L, Aditina N, Meidika YA. Analisis Migran Risen di Sektor Formal dan Informal: Hasil Sakernas 2018. J Ekon dan Bisnis. 2020;23(1):37–52.
34) Gekic H, Bidzan-Gekic A, Miric R, Remenyi P. Hidden Geographies of Population Implosion in Bosnia and Herzegovina. Eur J Geogr. 2020;11(2):47–64.
35) Bertoli S, Fernández-Huertas Moraga J. Multilateral Resistance to Migration. J Dev Econ. 2013;102 (C):79–100.