ANALISIS KAUSALITAS UPAH MINIMUM REGIONAL DENGAN LAJU INFLASI DI PROVINSI JAWA TENGAH TAHUN 1990-2020

Akhmad Korib, NIM.: 14810057 (2022) ANALISIS KAUSALITAS UPAH MINIMUM REGIONAL DENGAN LAJU INFLASI DI PROVINSI JAWA TENGAH TAHUN 1990-2020. Skripsi thesis, UIN SUNAN KALIJAGA YOGYAKARTA.

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Abstract

This study aims to analyze the causal relationship between the regional minimum wage (UMR) and the inflation rate, as well as the long-term relationship between the two variables. Several previous studies have said that there is a unidirectional relationship, both inflation affects the UMR, and the UMR affects inflation. There are even studies that have found that there is a two-way (reciprocal) relationship between the two. In the perspective of Islamic Economics, the rules in the provision of wages are to meet the elements of justice and feasibility. Fair means clear and transparent. While decent means sufficient clothing, food, and housing and in accordance with the economic conditions at that time. In this study, the analytical tool used is the Vector Autoregression (VAR) model. The result said that the relationship between UMR and inflation in Central Java province is a unidirectional relationship. The minimum wage variable affects the inflation rate, while the inflation variable does not affect the minimum wage.

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