THE ANALYSIS OF FACTORS THAT AFFECT LABOR ABSORPTION IN NATURAL RUBBER PLANTATION
Abstract
The study aimed to analyze several indicators that exist in the rubber industry and
their influence on labor absorption in particular provinces in Indonesia from 2012
- 2015. The provinces consisted of North Sumatera, Riau, South Sumatera,
Lampung, West Kalimantan, Central Kalimantan, South Kalimantan, West Java,
Aceh, and East Java. The factors that the writer used in this research were rubber
production, the size of rubber plantation, provincial minimum wage, and the
number of company. In this research, the writer used panel data regression as the
analyzing tool and random effect model as the best model to describe the
relationship between independent and dependent variables. The result of the result
shows that the provincial minimum wage and the number of company had
significant effect on labor absorption while the other two, rubber production and
the size of rubber plantation area did not have significant effect on labor
absorption.
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