THE EFFECT OF FINAL EDUCATION LEVEL, GROSS REGIONAL DOMESTIC PRODUCT, AND PROVINCIAL MINIMUM WAGE ON LABOR FORCE PARTICIPATION RATE IN 34 INDONESIAN PROVINCES: AN ISLAMIC ECONOMIC PERSPECTIVE

Abstract

Economic development is closely related to demographic issues associated with employment. One important goal of economic development is to provide enough job opportunities to pursue faster labor force growth, as the context of Islamic economics also encourages people to work or trade, and to avoid begging to meet economic needs. This study aims to analyze the influence of the final education level, regional gross domestic product, and provincial minimum wages on the labor force participation rate in 34 provinces of Indonesia from an Islamic economic perspective. The research method used in this study is quantitative, presented in the form of panel data from 34 provinces in Indonesia with saturated sampling techniques, and data analysis is conducted using Eviews 10 software. The research results show that the variable of final education level has no partial effect on TPAK in 34 provinces of Indonesia, while the variable of gross regional domestic product and provincial minimum wage have a positive and significant partial effect on TPAK in 34 provinces of Indonesia. The research results indicate that final education level, gross regional domestic product, and provincial minimum wage simultaneously have a positive and significant effect on TPAK in 34 provinces of Indonesia.