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This article studies the effects of state minimum wage increase on information technology (IT) adoption at the establishment level in the United States. Our results show that treatment establishments on average allocate between $10,328 and $66,808 more per year to their IT budgets during the first 3 years after experiencing significant state minimum wage increases. Additional evidence shows that state minimum wage increases on average lead to an economically small decrease in employment. The estimated employment effect is larger for establishments that have more incentives to automate labor. Our results suggest that establishments adopt technology to countervail increased labor costs. [ABSTRACT FROM AUTHOR]

The authors estimate the effects of an increase in the youth minimum wage in the Netherlands on low-paid workers' employment and earnings, using a difference-in-differences approach with detailed administrative data. Findings show that the increase does not have a negative effect on the number of jobs or hours worked, hence raising overall earnings for affected workers. Further, the minimum wage increase has substantial spillover effects, accounting for close to 70% of the average wage increase experienced by workers. While employment grows in fixed-term and temporary help agency contracts, the authors do not find evidence of declines in employment in other types of work arrangements, nor of labor-labor substitution. Labor market outcomes evolve most favorably for full-time incumbent workers who are not enrolled in education and are thus less likely to be transient occupants of minimum wage jobs. [ABSTRACT FROM AUTHOR]

Most minimum wage studies are identified on small, plentiful, mostly expected wage changes, spread out over time. A recent set of changes have instead been large, rapid, and unexpected, following the "Fight for $15" movement. Alberta is the first North American province, state, or territory to have this $15 minimum wage, with an unexpectedly large increase (47%) occurring over a short time horizon (3 years). The employment effects of this policy are estimated using a synthetic control approach on Labour Force Survey data. Similar to the existing literature, workers moved up the wage distribution, increment by increment, but with a higher distributional reach. Employment losses occurred at similar elasticities, but with large level changes, mostly among younger workers. Newer to the literature, regional employment losses were found in four of the five non-urban economic regions, but not in Alberta's two main cities, showing the significance and nuance of regional heterogeneity. [ABSTRACT FROM AUTHOR]

Over the past decade, organized labour has played a significant role in advocating for minimum wage increases. In this paper, we investigate the effects of minimum wage increases on union membership among individuals in minimum wage intensive industries. We find no evidence of a change in union membership among high-skilled workers in these industries. Consistent with a 'free-riding' hypothesis, we find evidence that minimum wage increases predict declines in union membership among low-skilled workers in these industries. These workers are the minimum wage's most direct beneficiaries. [ABSTRACT FROM AUTHOR]

This study conducts a systemic comparison of minimum wage decision-making in Korea and Taiwan. It demonstrates that Korea's big-business-dominated economy builds confrontational labour–business relations to be exploited by political parties, resulting in partisan decisions on the minimum wage, to a greater extent than Taiwan's more mixed economy. A large social divide based on the economic structure translates into a substantial partisan difference in minimum wage policies, when endorsed by the unique features of the minimum wage issue and carried out through the agents of the tripartite commission. As seen from the outcomes, a marked difference exists between Korea and Taiwan: Korea shows a dramatic fluctuation in annual minimum-wage increases, whereas Taiwan's increases remain stable across different governments. Korean governments actively respond to their core constituencies, whether labour or business, while Taiwan governments seek to strike a balance. [ABSTRACT FROM AUTHOR]

Countries around the world are working to develop social protection floors to help reduce poverty. Ensuring workers can earn adequate wages is an important component of social protection floors. In this paper, we explore who receives minimum, poverty, median, and living wages in Jordan, comparing 2010 and 2016, and in Tunisia in 2014. We demonstrate that while the majority of workers do earn at least minimum and poverty wages, only a minority of workers earn a living wage. The chances of earning minimum, poverty, median, and living wages depend on the characteristics of workplaces, specific work characteristics (especially job formality and skills required), and the demographic characteristics of workers. While results are consistent with wages reflecting, in part, workers' productivity, they may also reflect rents, efficiency wages, and for minimum wages issues with enforceability and policy design. These findings highlight which workers are vulnerable to low earnings and where greater enforcement or redesign of minimum wage legislation might be needed. [ABSTRACT FROM AUTHOR]

Despite efforts to close the gender wage gap in the US, research shows that progress has stalled over the past two decades. Factors contributing to this gap include implicit gender bias, disproportionate caregiving responsibilities, and a lack of strong policies. Minority women are disproportionately affected by this gap, and the "motherhood penalty" and "fatherhood premium" also exacerbate the problem in gendered workplaces. Addressing implicit bias and stereotypes at the organizational level, along with implementing more equitable family, compensation, and caregiver-friendly policies, is crucial. Training programs that identify and address implicit bias can lead to fairer compensation and promotion practices. Policylevel changes such as banning salary history and revising paid-leave policies are also essential. Human resource professionals play a key role in creating a supportive organizational culture and addressing implicit bias. Comprehensive strategies are needed to address the gender wage gap, including policies supporting paid leave, salary transparency, and reassessment of minimum wage policies. Overall, a combination of policy changes and organizational efforts is needed to mitigate the complex factors contributing to the gender wage gap in the US. Pay equity is not only important for women's economic security but also for the broader economy's growth and sustainability. [ABSTRACT FROM AUTHOR]

Economic freedom, a measure of the degree of freedom from government intervention in the economy, has been found to be associated with many positive economic outcomes, such as lower unemployment rates, and higher growth of income, employment, and population. One area that remains unexplored is the relationship with food insecurity. Areas with more government intervention may be expected to have higher food insecurity because those interventions can create greater impediments to people's ability to prosper economically. One specific example of that is the minimum wage, which may make it harder for inexperienced low‐skilled workers to obtain employment. We provide the first state‐level examination of the relationship between food insecurity and economic freedom and find higher values of economic freedom (lower levels of intervention) are associated with lower food insecurity. We also examine one specific component of that economic freedom measure, the minimum wage, and find some limited evidence that higher minimum wages are associated with higher food insecurity. [ABSTRACT FROM AUTHOR]

Although a number researchers have acknowledged that the aging population inhibits firm digital transformation, others find it promoting digital transformation in some firms. As the relevant literature to clarify such paradox is still scare, this paper wants to fill the gap regarding the labor cost theory, the capital-skill complementarity hypothesis, and the human capital externality theory. Based on the empirical tests of Chinese A-share listed companies from 2001 to 2022, this study detected a U-shaped relationship between the aging population and digital transformation. In terms of the institutional environment, higher marketization strengthens the U-shaped relationship by making the slopes on either side of it steeper. However, higher minimum wage levels weaken the U-shaped relationship. In terms of firm strategy, firms with stronger marketing capabilities strengthened the U-shaped relationship. However, firms with higher customer concentration weakened the U-shaped relationship. Overall, we enriched scholarly understanding of the impact of the aging population on digital transformation and demonstrated the dual potential impact of aging populations. Instead of assuming they are detrimental to the economy and society, positive contributions in the form of innovation and progress for companies can be detected. Highlights: • Aging is an unavoidable demographic problem in China, with very complex social roots behind it. • Increased aging has thwarted China's digital economy, but aging is not the only negative impact on digitization. • The digital transformation process of Chinese listed companies is distinctly heterogeneous in the face of aging shocks. • By taking into account the institutional environment and strategic development, Chinese companies can seek a proactive path of development to adapt to aging, and even accelerate digital transformation. [ABSTRACT FROM AUTHOR]

This article exploits the introduction of a sectoral minimum wage in the German construction industry and the National Minimum Wage (NMW) in the UK to examine the influence of minimum wages on the immigrant wage gap in two sectors with a large population of immigrant worker and varying wage-setting environments. Our results suggest that minimum wage reform may reduce the wage gap between immigrants and natives in liberal market economies where wage-setting arrangements are largely decentralized. As anticipated, this effect appears to be confined at the bottom end of the wage distribution with no apparent spill-over effects higher in the wage distribution. [ABSTRACT FROM AUTHOR]

ABSTRACT Political corporate social responsibility (CSR) research focuses on how companies leverage their CSR efforts to improve public goods provision in countries where public governance is lacking. Previous studies, due to their limited analytical scope, have not thoroughly examined the dynamic nature of these governance gaps. Another missing puzzle is how certain actors in these countries, through their regular operations, independently facilitate political CSR opportunities – such as production network intervention (PNI) programmes. Positioning PNI programmes as brokers of political CSR, we investigate four such programmes in the Myanmar's garment industry during the early years of the country's reform. We conduct neo‐Gramscian analysis to examine how these programmes attempted to establish cultural and ideological leadership over CSR discourse and practice in the industry. We analyse the manufacturers’ responses to this contestation, which evolved with the introduction of a minimum wage, and discuss the theoretical and practical implications of this study. [ABSTRACT FROM AUTHOR]

AbstractFollowing the 2013 electoral setback and post-election protests, the ruling Cambodian People’s Party has pursued policy concessions to mobilise support from workers in the garment industry. This article examines the role of government-aligned unions in vote mobilisation. It is argued that despite their under-performance in the 2013 election, government-aligned unions retain the trust of the Cambodian People’s Party leadership and continue to play a vital role in facilitating co-optation by communicating public policies and political messages to workers, influencing the minimum wage determination process, and delivering free healthcare services. This article contributes to the growing literature on the Cambodian People’s Party’s post-2013 adaptation and the broader literature which often focuses on labour unions in single-party regimes. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We examine and compare the relationship between minimum wage increases and youth homicide rates in three groups: all youth, White youth only, and Black youth only. Using 2001–2019 mortality data from the National Vital Statistics System (NVSS) for all 50 states and Washington DC, we apply a difference in differences (DD) design to compare the change in youth homicides across states with varying changes in the state-specific minimum wage. With the inclusion of state-specific linear time trends, we find that a $1 increase in minimum wage leads to a significant 4% reduction (RR = 0.96, 95%CI [0.92, 0.99]) in homicides among White youth, but no significant reduction among Black youth (RR = 0.98, 95%CI [0.91, 1.04]). Findings are consistent with research on marginalization-related diminished returns for Black youth. While minimum wage increases are a promising step to reduce youth homicides overall, reducing homicide disparities experienced by Black youth requires additional components. Future research should examine policies with the specific intention to dismantle structural racism. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article discusses the case of the minimimum wage for Italy as a policy instrument to foster both social justice and productive efficiency. After briefly reviewing the empirical evidence on the effects of minimum wages upon employment, wage distribution and firm-level reallocation, it presents a series of channels, from the micro to the macro level that can represent transmission mechanisms able to trigger positive feedback loops in the macroeconomic system. [ABSTRACT FROM AUTHOR]

Copyright of Revista Foco (Interdisciplinary Studies Journal) is the property of Revista Foco and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Bangladesh's Ready-Made Garments contribute significantly to the country's economy and employment. In Bangladesh, spontaneous outbursts are usually caused by Ready-Made Garment workers due to inadequate pay, unpaid wages, and compensation for overtime work. Since these three criteria affect workers' job satisfaction, and some socio-demographic characteristics such as age, education, gender, marital status also influence job satiety, finally, all of these were needed to be studied in a single research study to narrate the impact of pay scale on garment workers, which had not done yet with the aid of nonparametric tests. So this research explored the impact of the 2018 revised minimum wage policy by examining workers' perceptions of wages, including basic pay, overtime compensation, various allowances (housing, medical, food, transportation), and the degree of workers' satisfaction within a group based on demographic traits. 80 responses, according to convenience sampling, were analyzed using descriptive statistics, the Mann-Whitney U and Kruskal-Wallis tests. The results highlighted dissatisfaction with basic pay, late payments, medical, and housing allowances but higher satisfaction with overtime compensation and transportation stipends. The study also found no significant difference in overall satisfaction with the wage structure based on gender or marital status, but it showed that aged, more educated workers are, for some reason, happier. Thus, the findings provide important insights for policymakers and industry stakeholders, shedding light on timely payment with a revised pay scale according to the present circumstances, considering worker needs like medical, housing allowances, etc. and creating an environment to involve women and young people. [ABSTRACT FROM AUTHOR]

The lobster (Panulirus spp.) is an important fisheries commodity in Indonesia for local and international markets. The fishing pressure has been significantly increasing, mostly in overexploited states, which will threaten the sustainablity of fisheries. The decree of the Minister of Marine Affairs and Fisheries of the Republic of Indonesia, Number 16/PERMEN-KP/2022, focusing on controlling the lobster distribution and legal catch size, is an important management measure by the Indonesian government to protect stock depletion and to achieve the sustainability of the fishery. Meanwhile, socio-economic and institutional aspects play crucial roles in sustainable lobster fisheries. Thus, the ecosystem approach to fisheries management (EAFM) has been widely considered in integrated fishery management status evaluation. This study aimed to assess the management status of the lobster fishery based in Prigi Bay, Trenggalek Regency, East Java. Three aspects of EAFM, i.e. social, economic, and institutional, were used for this study. A field survey and direct interviews with key stakeholders at the study site have been conducted to collect the data. A multi-criteria analysis and composite index were used to analyze the data. This study revealed that: (1) the conflicts between compressor diving to fish lobster and conventional fishing gears (nets and traps) have no resolution yet; (2) there is no local knowledge (customary) implemented for lobster fishery management; (3) income of the household lobster fishers exceeds the East Java Province Minimum Wage (UMP); (4) the lobster fisheries management plan (RPP) in Indonesia is not available yet, particularly in this study area. Finally, based on the aggregate assessment of EAFM, the lobster fishery in Prigi Bay is in a “good” management status. The existing management measures for the lobster fishery in this area should be maintained and improved for the low-score indicators. [ABSTRACT FROM AUTHOR]

This research employed the Anker and Anker (2017) methodology to measure the living wage and assess the socioeconomic reproduction capacity of workers at the lowest wage level. This measurement compares the contractual wage with the minimum wage, the extreme urban poverty and the urban poverty wage and calculates the percentage increase needed to come close to a living wage. The results reveal that the contractual wage is 47% above the minimum wage, 48% above the extreme urban poverty wage, but 4% below the urban poverty wage. And it is significantly below the living wage, with a deficit of 49%. [ABSTRACT FROM AUTHOR]

This Article examines the three U.S. Supreme Court opinions authored by Justice Felix Frankfurter that cited the landmark decision in West Coast Hotel Co. v. Parrish* (1937). I describe the three Parrish- citing opinions as: (1) "perfunctory"--Mayo v. Lakeland Highlands Canning Co.** (1940) (Frankfurter, J., joined by Black and Douglas, JJ., dissenting); (2) "ugly"--Winters v. New York*** (1948) (Frankfurter, J., joined by Jackson and Burton, JJ., dissenting); and (3) "good"--American Federation of Labor v. American Sash & Door Co.**** (1949) (Frankfurter, J., concurring). Whatever one might think about the substance of these opinions, there is absolutely no doubt of the following. First, they are classic statements of the jurisprudential principles for which, thanks in large part to Brad Snyder's biography, Felix Frankfurter (FF) will be principally remembered. Second, each of the three citations of Parrish is true to that 1937 decision, thereby demonstrating FF's unwavering commitment (as both a lawyer and a jurist) to the progressive belief in the societal value of minimum wage and maximum hours laws. In other words, with regards to West Coast Hotel Co. v. Parrish, FF was the very model of a citation-consistent Democratic Justice. [ABSTRACT FROM AUTHOR]

Microlibertarianism concerns issues upon which the overwhelming proportion of libertarians agree: minimum wages, rent control, free trade, drug legalization. Macro libertarianism concerns issues upon which there is little or no consensus: voluntary slavery, immigration, abortion, covid vaccinations and the Israeli war with Hamas. The present paper is concerned with only the latter two controversies. McMaken (2024) takes the position that while Block's views on microlibertarianism are valid, and even, perhaps, commendable, his perspective on these latter two issues is nothing short of highly problematic, not to say abominable. The specific charge of McMaken's is the Block places his support for Jews in general, and Israel in particular, ahead of libertarianism. Thus, while he may be a good microlibertarian, he is no longer, if ever he was, a good macrolibertarian. The present paper offers a defense of the views of the latter vis a vis the charges of the former. [ABSTRACT FROM AUTHOR]

This paper uses minimum wage hikes to evaluate the susceptibility of low-wage employment to technological substitution. We find that automation is accelerating and supplanting a broader set of low-wage routine jobs since the 2008–2009 financial crisis. Simultaneously, low-wage interpersonal jobs are increasing and offsetting routine job loss. However, interpersonal job growth does not appear to be enough, as it was prior to the financial crisis, to fully offset the negative effects of automation on low-wage routine jobs. Employment losses are most evident among non-Asian people of color who experience outsized losses at routine jobs and smaller gains at interpersonal jobs. [ABSTRACT FROM AUTHOR]

The minimum wage is one of the national strategic policies whose regulations are determined by the central government through laws and derivative regulations. The business problem faced by business actors in Karawang is the disruption of business operations due to the freeze that occurred during the minimum wage period at the district level. Even though discovery is a right as an Indonesian citizen, this research aims to initiate an industrial relations peace strategy for companies in Karawang to be able to carry out promotional, preventive, overcoming, and rehabilitative steps. This research focuses on the period 2019–2024 and analyzes the district minimum wage policy, which is accommodated by the Apindo Karawang Regency Leadership Council. The research methods used include literature studies, policy analysis, and interviews with relevant stakeholders such as business leaders, human resources managers, Government and Union Leaders . The results of the analysis highlight significant developments in the industrial relations paradigm in Karawang by identifying factors that influence welfare, harmony, and justice in work relations. The findings of this research provide in-depth insight into the impact of implementing minimum wages on the dynamics of industrial relations in companies in Karawang. This research provides a positive contribution to business as well as a better understanding of the strategies that can be used to achieve prosperous, harmonious, and fair working relationships in an industrial environment. It is hoped that the policy implications resulting from this thesis can provide guidance for stakeholders in developing steps that support the positive development of industrial relations in Karawang. [ABSTRACT FROM AUTHOR]

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This paper shows that more highly concentrated labour markets experience more positive employment effects of the minimum wage. In the most concentrated labour markets, employment rises following a minimum wage increase. The paper establishes its main findings by studying the effects of local minimum wage increases on a key low-wage retail sector, and using data on labour market concentration that covers the entirety of the U.S. with fine spatial variation at the occupation level. The results carry over to the fast-food sector and the entire low-wage labour market and are robust to using proxies of labour market concentration available for a broader range of industries, such as the number of establishments and population density. A model of oligopsonistic competition can explain these effects: there is more room to increase wages in high-concentration areas where wages tend to be further below marginal productivity. These findings provide evidence supporting monopsonistic wage setting as an explanation for the near-zero minimum wage employment effect documented in prior work. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Social Sciences (IJSS) / Uluslararasi Sosyal Bilimler Dergisi is the property of International Journal of Social Science and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Interactions between redistributive policies can confront low‐income households with complicated choices. We study one such interaction, namely the relationship between Medicaid eligibility thresholds and the minimum wage. A minimum wage increase reduces the number of hours a low‐skilled individual can work while retaining Medicaid eligibility. We show that the empirical and welfare implications of this interaction can depend crucially on the relevance of labor market frictions. Absent frictions, affected workers may maintain Medicaid eligibility through small reductions in hours of work. With frictions, affected workers may lose Medicaid eligibility unless they leave their initial job. Empirically, we find that workers facing this scenario became less likely to participate in Medicaid, less likely to work, and more likely to spend time looking for new jobs, including search while employed. The observed outcomes suggest that low‐skilled workers face substantial labor market frictions. Because adjustment is costly, tinkering with safety net program parameters that determine the location of program eligibility notches can be harmful to beneficiaries. [ABSTRACT FROM AUTHOR]

The past 20 years were convulsive for industrial relations in Ireland: from boom to bust and back again, with the Financial Crisis killing off national bargaining; the Supreme Court first undermining sectoral bargaining, then shifting back in favour of it; and of course, the Covid‐19 pandemic generating an overhaul of working conditions across society. All along, widespread industrial unrest has been notable by its absence. Long‐term decline in Irish trade union density continues, despite recent research showing significant popular support for trade unions, particularly among young workers. Now, the obligation to transpose the Directive on Adequate Minimum Wages has brought Ireland to a crossroads in collective labour law and industrial relations reform. How Ireland has responded to these pressures, internal and external, holds lessons for other jurisdictions, of which this article highlights three: a commitment to pragmatic adaptation over principled coherence makes measuring the success of any reform project difficult; different methods of reform enjoy varying levels of legitimacy; and disjunction between different levels of bargaining generates pressure on the system, including risks to the legitimacy of the system itself and the actors within it—particularly beleaguered trade unions. [ABSTRACT FROM AUTHOR]

We conducted interviews with parents earning low wages to understand their experiences related to financial responsibilities and use of government and informal resources in Raleigh, North Carolina. Inadequate economic opportunities and assistance programs, and high costs of living, compounded into cycles of playing catch up on expenses. Assistance programs aimed at alleviating hardships related to poverty were described as piecemeal. We found that social and economic systems failed to support parents earning low wages. Our findings suggest that ordinances that assure a livable minimum wage paired with expansions of safety net programs could better meet the needs these parents. [ABSTRACT FROM AUTHOR]

Abstract Although a number researchers have acknowledged that the aging population inhibits firm digital transformation, others find it promoting digital transformation in some firms. As the relevant literature to clarify such paradox is still scare, this paper wants to fill the gap regarding the labor cost theory, the capital-skill complementarity hypothesis, and the human capital externality theory. Based on the empirical tests of Chinese A-share listed companies from 2001 to 2022, this study detected a U-shaped relationship between the aging population and digital transformation. In terms of the institutional environment, higher marketization strengthens the U-shaped relationship by making the slopes on either side of it steeper. However, higher minimum wage levels weaken the U-shaped relationship. In terms of firm strategy, firms with stronger marketing capabilities strengthened the U-shaped relationship. However, firms with higher customer concentration weakened the U-shaped relationship. Overall, we enriched scholarly understanding of the impact of the aging population on digital transformation and demonstrated the dual potential impact of aging populations. Instead of assuming they are detrimental to the economy and society, positive contributions in the form of innovation and progress for companies can be detected.

We propose a nonlinear difference-in-differences (DiD) method to estimate multivariate counterfactual distributions in classical treatment and control study designs with observational data. Our approach sheds a new light on existing approaches like the changes-in-changes estimator and the classical semiparametric DiD estimator, and it also generalizes them to settings with multivariate heterogeneity in the outcomes. The main benefit of this extension is that it allows for arbitrary dependence between the coordinates of vector potential outcomes and includes higher-dimensional unobservables, something that existing methods cannot provide in general. We demonstrate its utility on both synthetic and real data. In particular, we revisit the classical Card & Krueger dataset, which reports fast food restaurant employment before and after a minimum wage increase. A reanalysis with our methodology suggests that these restaurants substitute full-time labor with part-time labor on aggregate in response to a minimum wage increase. This treatment effect requires estimation of the multivariate counterfactual distribution, an object beyond the scope of classical causal estimators previously applied to this data.

Small and medium businesses in East Java as a mainstay sector in labor absorption tend to fluctuate. The problem in this research is how the number of business units, investment and minimum wages correlate with labor absorption in the small and medium enterprise sector in East Java Province. The aim of this research is to analyze the number of business units, investment and minimum wages on labor absorption in the small and medium business sector in East Java Province. The research results obtained by correlation testing the number of SMEs have a significant positive relationship to the labor absorption, investment has a significant positive relationship to the labor absorption and the minimum wage also has a significant positive relationship to the labor absorption. The results of this research indicate that SMEs managers should provide direct credit financing facilities. both bureaucratic and according to the interest rates given, so that government investment which tends to be more capital intensive can be absorbed by SMEs well as well as business training, books and the internet in searching for market information and business management methods so that their businesses can develop more effectively.

Economic development can be described as a process of system or non-social system in order to achieve a better condition. It is often related to public welfare as evidenced by the poverty phenomenon experienced by the population. The population growth in a country must be controlled in order to prevent a threat to the country’s welfare, since an increase in the population will lead to an increase in the need for fulfillment. This condition should be balanced with a proper income alignment. East Java Province has the second highest population in Indonesia. In fact, this condition has had an impact on the economic development process, particularly in East Java, where there has been an increase in the poverty rate. Over the past decade, the poverty rate in East Java has fluctuated. It showed an increase in a few years, namely 2015, 2020, and 2021, with an average increase of 0.88%. This study aims to identify the effects of several factors on the poverty rate in East Java between 2017 and 2022. Furthermore, this study used a quantitative method with a panel regression analysis. The independent variables included open unemployment rate, labor force participation rate, minimum wage, and education level. This study found that open unemployment rate and minimum wage affected poverty rate. In contrast, labor force participation rate and education level did not affect poverty rate.