Elasticity of Economic Factors on the Female Labor Force Participation Rate

This study aims to analyze the elasticity of economic factors on the female labor force participation rate (LFPR) in Java Island during the period 2018–2023. The economic factors analyzed include informal sector employment, mean years of schooling, provincial minimum wage (UMP), gross regional domestic product (GRDP), and open unemployment rate (TPT). This study employs panel data from six provinces in Java Island using panel data regression analysis. Based on the model selection test, the Fixed Effect Model (FEM) was selected as the best-fit model. The results indicate that informal sector employment, mean years of schooling, GRDP, and open unemployment rate have a significant effect on the female LFPR in Java Island. Meanwhile, provincial minimum wage has no significant effect on female LFPR. These findings suggest that women's decisions to participate in the labor market are more influenced by structural conditions and labor market characteristics rather than wage policy.