THE EFFECT OF ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS ON UNEMPLOYMENT IN SOUTH SULAWESI

Abstract

Unemployment is one of major problems faced by all countries, including
developed countries. This problem also occurs in all provinces in Indonesia, including
South Sulawesi. The unemployment rate in South Sulawesi is even higher than the
national level in 2017. The objective of this research is to analyze the effect of
economic and demographic characteristics on unemployment in South Sulawesi in
2017. While economic characteristics includes Gross Regional Domestic Product
(GRDP) and city’s minimum wage, demographic characteristics consists of gender,
age, status in household, marital status, and education. The data of this research was
obtained from the Central Statistics Agency of South Sulawesi and the result of 2017
national survey on labor force (SAKERNAS) and was analyzed using logistic
regression analysis processed in Stata 14.2. The result shows that variables with
tendencies to influence a person to become unemployed in South Sulawesi are GRDP,
gender, age, status in household, marital status, and education, in this case senior high
school and university graduates are affected. Furthermore, variables that do not have
any significant effect on unemployment in South Sulawesi are the city’s minimum
wage and education, in this case elementary school and junior high school graduates
are not affected.
Keywords: unemployment, economic characteristics, demographic characteristics,
South Sulawesi