Dampak Upah Minimum Terhadap Produktivitas Tenaga Kerja: Studi Kasus Industri Manufaktur Indonesia

Abstract

In the last two decades, the manufacturing industry's contribution to Gross Domestic Product (GDP) has decreased from 26.4 percent in 2000 to 21.7 percent in 2019. The sinking productivity of the manufacturing industry causes this decline in performance. Therefore, to increase the manufacturing industry's performance, productivity must be boosted. One way to improve the manufacturing industry's productivity is to increase labor productivity it self. According to the wage efficiency theory and production theory, wage is one of the factors that can affect labor productivity. Through the spillover effect mechanism, an increase in the minimum wage will increase workers' wages. Meanwhile, the increase in workers' wages will affect labor productivity. This study aims to examine the spillover effect using a syllogistic framework, which examines the effect of an increase in minimum wages on wage increases, and the effect of wages on labor productivity in the manufacturing industry. Using the panel data regression model and BPS large-medium industry survey data from 2010 to 2015, this study shows that minimum wages are positively and significantly associated with wages, and positively and significantly associated with labor productivity. These results indicate a spillover effect of an increase in the minimum wage on the increase in workers' wages, which has implications for labor productivity in the manufacturing industry. Thus, the minimum wage policy can be used as an instrument in boosting labor productivity of the manufacturing industry.