District Minimum Wages, Relocation of Unemployed Companies and Its Impact on Poverty

Abstract

Background. Determining district minimum wages often becomes a problem every year even though there are clear regulations. The district minimum wage always becomes a dilemma if it is determined that the increase is too large and too small even if there is no increase. High and low wages will affect the supply and demand for labor which will ultimately impact the relocation of companies and the number of unemployed and even impact poverty.

Aims. The aim of this research is to examine and analyze the district minimum wage, company relocation and unemployment and their impact on poverty.

Method. The research method uses quantitative methods with descriptive statistical analysis tools and multiple linear regression analysis of panel data with SPSS. Research data uses secondary data from agencies and combines data from interviews and field observations at companies, associations or institutions that issue official and valid data.

Results. Based on the results of this research, it shows that the district minimum wage, company relocation and unemployment do not have a significant influence on poverty, but have a very strong relationship with poverty.