ANALYSIS OF FACTORS AFFECTING THE ABSORPTION OF FEMALE LABOR IN CENTRAL JAWA

Women’s participation in the labor market plays a crucial role in advancing economic growth and fostering gender equality, yet it continues to encounter persistent social and structural obstacles. This research seeks to examine the determinants of female employment absorption in Central Java from 2019 to 2023. The analysis applies panel data regression with a Fixed Effect Model (FEM) to capture the influence of each explanatory variable. The study incorporates the Information and Communication Technology Development Index (ICTDI), Provincial Minimum Wage (PMW), Average Years of Schooling (AYS), investment, labor force, and the presence of vocational training centers. Findings reveal that PMW, AYS, labor force, and vocational training centers exert a significant impact on female labor absorption, whereas ICTDI and investment show no meaningful effect. In light of these results, it is recommended that policymakers emphasize equitable wage systems, broaden educational opportunities, encourage women’s participation in the workforce, and reinforce the contribution of vocational training institutions to sustainably enhance competitiveness and the integration of women into the labor market. Keywords: Labor Absorption; Information; Provincial Minimum Wage; Labor Force; Communication and Technology Development Index (IP-ICT); Level of Education; Vocational Training Institutions

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Publication Details

Journal
Journal of Management Small and Medium Enterprises (SMEs)
Published
2025-08-20
DOI
https://doi.org/10.35508/jom.v18i2.24371
Primary Topic
Economic Growth and Fiscal Policies
Type
article
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article

ANALYSIS OF FACTORS AFFECTING THE ABSORPTION OF FEMALE LABOR IN CENTRAL JAWA

Siti Aisyah, Ailiana Santosa
Journal of Management Small and Medium Enterprises (SMEs)
Economic Growth and Fiscal Policies
article

ANALYSIS OF FACTORS AFFECTING THE ABSORPTION OF FEMALE LABOR IN CENTRAL JAWA

Siti Aisyah, Ailiana Santosa
article en

Abstract

Women’s participation in the labor market plays a crucial role in advancing economic growth and fostering gender equality, yet it continues to encounter persistent social and structural obstacles. This research seeks to examine the determinants of female employment absorption in Central Java from 2019 to 2023. The analysis applies panel data regression with a Fixed Effect Model (FEM) to capture the influence of each explanatory variable. The study incorporates the Information and Communication Technology Development Index (ICTDI), Provincial Minimum Wage (PMW), Average Years of Schooling (AYS), investment, labor force, and the presence of vocational training centers. Findings reveal that PMW, AYS, labor force, and vocational training centers exert a significant impact on female labor absorption, whereas ICTDI and investment show no meaningful effect. In light of these results, it is recommended that policymakers emphasize equitable wage systems, broaden educational opportunities, encourage women’s participation in the workforce, and reinforce the contribution of vocational training institutions to sustainably enhance competitiveness and the integration of women into the labor market. Keywords: Labor Absorption; Information; Provincial Minimum Wage; Labor Force; Communication and Technology Development Index (IP-ICT); Level of Education; Vocational Training Institutions

Journal of Management Small and Medium Enterprises (SMEs)Vol. 18(2)
Muhammadiyah University of Surakarta (ID)
Openalex Percentile: Top 69%
Economic Growth and Fiscal Policies
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