Studi ini bertujuan membandingkan dampak kebijakan upah minimum terhadap tingkat employment dan rata-rata upah buruh di industri padat karya dan padat modal. Dengan menggunakan metode Pooled OLS dan Fixed Effects serta data Survei Industri Besar dan Sedang tahun 2011-2015, hasil estimasi menunjukkan bahwa kenaikan UMR memiliki dampak positif terhadap tingkat employment di industri padat karya, tetapi tidak bagi industri padat modal. Kenaikan UMR juga memiliki hubungan yang positif dengan rata-rata upah di industri padat karya. Hal ini berbeda dengan industri padat modal, kenaikan UMR justru berdampak negatif terhadap rata-rata upah.

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There has been a long-standing debate about the effectiveness of minimum wages as a social welfare policy for labor. To continue this discussion, this study aims to compare the effects of minimum wage policy towards the employment rate and average workers wage in Indonesias labor-intensive and capital-intensive industries. By using panel data from Indonesia Annual Manufacturing Survey for the years 2011-2015, this study found that an increase in the regional minimum wage has a positive relationship with the employment rate in labor-intensive yet not in capital intensive industries. Moreover, this study also shows the existence of a positive relationship between the minimum wage level and the average workers wage in labor intensive industries. On the contrary, in capital intensive industries, an increase in the minimum wage level significantly diminishes workers average wages.