[ABSTRAK
Kemiskinan merupakan permasalahan bagi masyarakat karena mempunyai akibat sosial politis dan ekonomi Aspek sosial politis dari kemiskinan menitikberatkan pada social exclusion penduduk miskin di masyarakat Sedangkan secara ekonomi kemiskinan dapat memperlambat proses pembangunan Para ekonom percaya bahwa pertumbuhan ekonomi penting untuk mengurangi kemiskinan Pemikiran ini pada akhirnya menghasilkan beragam paket kebijakan pemerintah yang unik Kebijakan upah minimum merupakan salah satu kebijakan yang populer untuk mengurangi angka kemiskinan Hal ini tidak hanya dikarenakan kebijakan upah minimum dapat meningkatkan rata rata pendapatan masyarakat namun juga karena kebijakan upah minimum merupakan kebijakan biaya rendah Card and Krueger 1995 Tujuan dari penelitian ini adalah untuk mempelajari hubungan antara upah minimum dan kemiskinan secara empiris Untuk mencapai tujuan tersebut penelitian ini menyusun sebuah data set yang terdiri dari data time series selama empat belas tahun sejak 2001 hingga 2014 dan data cross section dari 119 kabupaten kota di pulau Jawa Data yang terkumpul dianalisa menggunakan tiga metode analisa panel data pooled OLS fixed effect dan random effect Penelitian ini juga mencoba untuk menganalisa hubungan upah minimum dan kemiskinan di level provinsi dengan menggunakan sub sample data Hasil dari penelitian ini memperlihatkan bahwa kebijakan upah minimum di pulau jawa dapat mengurangi indeks kedalaman kemiskinan Poverty Gap Index dan presentase penduduk miskin Poverty Rate Namun pada level provinsi hasil regresi terlihat lebih bervariasi Di sebagian besar provinsi yang dianalisa kebijakan upah minimum mempunyai efek negatif terhadap indeks kedalaman kemiskinan dan presentase penduduk miskin.

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ABSTRACT

Poverty is a problem for a society by considering the socio political and economic considerations Socio political aspect of poverty underlines social exclusion in society While economically poverty can decelerate development process To alleviate poverty economists believe that economic growth is important This in turn result in a unique set of policies among government Minimum wage is one of most popular policy to alleviate poverty Not only because minimum wage can improve average income of society but also because it is a low cost policy Card and Krueger 1995 The objective of this research paper is to investigate the relationship of minimum wage and poverty empirically In order to do that this research paper construct a data set of time series data for fourteen years from 2001 until 2014 and cross section data of 119 districts in the Java The analysis is run by using three methods of panel data analysis pooled OLS fixed effect and random effect method This research paper also tries to analyze the relationship of minimum wage and poverty in the province level using sub sample data Result of this research papers shows that minimum wage policy in Java can reduce both poverty gap index and poverty rate However in the province level the regression show more varied results In most of the analyzed provinces minimum wage has negative effect towards poverty gap and poverty rate, Poverty is a problem for a society by considering the socio political and economic considerations Socio political aspect of poverty underlines social exclusion in society While economically poverty can decelerate development process To alleviate poverty economists believe that economic growth is important This in turn result in a unique set of policies among government Minimum wage is one of most popular policy to alleviate poverty Not only because minimum wage can improve average income of society but also because it is a low cost policy Card and Krueger 1995 The objective of this research paper is to investigate the relationship of minimum wage and poverty empirically In order to do that this research paper construct a data set of time series data for fourteen years from 2001 until 2014 and cross section data of 119 districts in the Java The analysis is run by using three methods of panel data analysis pooled OLS fixed effect and random effect method This research paper also tries to analyze the relationship of minimum wage and poverty in the province level using sub sample data Result of this research papers shows that minimum wage policy in Java can reduce both poverty gap index and poverty rate However in the province level the regression show more varied results In most of the analyzed provinces minimum wage has negative effect towards poverty gap and poverty rate]