Study of Minimum Wage, Level of Education, Employment Opportunity, and Unemployment Educated: Empirical Study in Padang

Erni Febrina Harahap


Unemployment may occur as a result of the high rate of change in the labor force that is not offset by sufficient jobs and labor absorption that a little, which is due to the low rate of growth in job creation to accommodate workers who are ready to work. In other words, in the labor market, the number of labor supply is higher than the amount of labor demand. This article analyzes the effect of the minimum wage, education, and employment opportunity toward unemployed educated in the city of Padang. The data used is secondary data obtained from the BPS, Padang dalam angka, Susenas, and other institutions that are linked from 2001 - 2015. Data were analyzed using multiple regression models with SPSS data processing. And this model is free from classical assumptions. The results obtained showed that the level of education that is reflected by graduates of bachelor significantly and positively affect the level of educated unemployment, means if more and more of labor force who successfully completed their education, so the educated unemployment is increasing. The minimum wage is a significant and negative effect on unemployment of educated, meaning that if minimum wage is high, the unemployment lower. While employment opportunity has no significant effect.

Keywords: labor force, unemployment educated, minimum wage, level of education, employment opportunity

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