Published June 6, 2024 | Version v1
Journal article Open

Provincial Minimum Wage and Gender Disparity in Eastern Indonesia: A Panel Data Approach

  • 1. Bachelor Student in Economics Development Study Program, Department of Economics, Faculty of Economics and Business Universitas Negeri Gorontalo – Jl. Jenderal Sudirman No. 6 Gorontalo, Indonesia
  • 2. Department of Economics, Faculty of Economics and Business Universitas Negeri Gorontalo – Jl. Jenderal Sudirman No. 6 Gorontalo, Indonesia

Description

This study aims to analyze the impact of the increase in the Provincial Minimum Wage on gender inequality in Eastern Indonesia. The data used is secondary data from the Central Statistics Agency (BPS) for the period 2017-2022, covering 14 provinces in the region. The analysis was carried out using panel data regression with the Random Effect Model (REM) method. The results showed that: The Provincial Minimum Wage had a negative impact on gender inequality in Eastern Indonesia during 2017-2022, meaning that any increase in the minimum wage could reduce gender inequality. Poverty negatively affects gender inequality, so an increase in poverty reduces gender inequality. The Women's Labor Force Participation Rate has a positive impact on gender inequality, so increasing women's participation in the labor force increases gender inequality. Economic growth negatively impacts gender inequality, which means that increased economic growth reduces gender inequality in Eastern Indonesia.

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