The Impacts of Inflation, Economic Growth and Labor Wage on Open Unemployment

Fransiskus X Lara Aba

Faculty of Economics and Business
Atma Jaya Catholic University, Jakarta, Indonesia
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Elisabeth Magdalena

Faculty of Economics and Business
Atma Jaya Catholic University, Jakarta, Indonesia
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Abstract

This study aims to analyze the impacts of inflation, economic growth (GDP), and labor wages on open unemployment in Indonesia for the period 2008-2016. The method of analysis used is a multiple linear regression with classical test and hypotheses. The results show that, partially, each of these three factors, as the only independent variables, does not have a significant effect on the open unemployment rate as the dependent variable. The regression model also shows no autocorrelation and heterocedasticity issues. While with all factors as a whole, the result shows that there is a simultaneously significant influence of the three fators on the open unemployment rate.
Keywords: inflation, GDP, open unemployment, labor wage
JEL codes: J164, J165, O40, O47.

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