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Comparison of Labour Absorption Based on Employment Status in the Regencies/Cities of South Sumatra Province

Author

Listed:
  • Dri Heppi

    (Sriwijaya University, Palembang, Indonesia)

  • Yunisvita

    (Sriwijaya University, Palembang, Indonesia)

  • Siti Rohima

    (Sriwijaya University, Palembang, Indonesia)

Abstract

The labour force is one of the factors of economic growth. At the same time, the discrepancy between the labour supply and the demand for it creates unemployment in the country. This study aims to analyze the difference in labour absorption in the labour status group of agricultural free workers and non-agricultural free workers using the variables that are more dominant in influencing labour absorption in the regencies/cities of South Sumatra Province. The sample was selected based on a multi-stage sample design with a probability method based on the cluster sampling method so that 172 people were obtained consisting of 62 free workers in agriculture and 110 free workers in non-agriculture in the regencies/cities of South Sumatra Province. The analysis technique uses the Chi-Square test and Multiple Regression Analysis based on the F-test and t-test. The independent variables in this study are working hours, marital status, gender, education level and employee's age. The results of the analysis show that there is a difference between the absorption of agricultural and non-agricultural free labour. Simultaneously, the variables of working hours, marital status, gender, education level and age affect the absorption of free agricultural and non-agricultural labour. Partially, only the education level variable has no significant effect on the absorption of free agricultural labour. This is because labour in agriculture is less qualified, and workers without a high level of education can be engaged for their performance. In general, in Indonesia the absorption of agricultural free labour is higher than the absorption of non-agricultural free labour. The most dominant variable affecting the absorption of agricultural free labour is gender, while for non-agricultural free labour is marital status.

Suggested Citation

  • Dri Heppi & Yunisvita & Siti Rohima, 2024. "Comparison of Labour Absorption Based on Employment Status in the Regencies/Cities of South Sumatra Province," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 137-146, March.
    • Handle: RePEc:iaf:journl:y:2024:i:1:p:137-146
    DOI: 10.33146/2307-9878-2024-1(103)-137-146
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    References listed on IDEAS

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    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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