MINIMUM WAGE IMPLICATIONS AND POVERTY NUMBERS EAST JAVA PROVINCE

An area is said to be advanced if the number of people living below the poverty line is getting smaller. But the problem of poverty is not an easy matter to solve, many factors that lead to faster growth every year. This study aims to analyze the implications of GDRP, the determination of regional minimum wages (UMR) and unemployment rates for the number of poor people in East Java Province. The method used in this study is a regression analysis with panel data covering, Regency and City GDRP data throughout the East Java Province, 2015 to 2016 UMR and unemployment in all Regency and City regions in East Java Province in the same two-year period . The results of the analysis of this study can be concluded that in the last two years the GDRP variables did not have an influence on poverty, but two variables, namely unemployment and regional minimum wages had an influence on the poverty rate in East Java Province. With the R square value obtained is 0.999483 which means that the model in this study is able to explain the phenomenon of 99.98 percent.


INTRODUCTION
Prosperous life which is intended to have many indicators, one of which is the ease of the community in gaining access to employment, the higher unemployment rate, the more difficult it is for the community to enter the work environment.

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Source: Central Statistics Agency (BPS), 2017 The difficulty of people entering the workforce has resulted in increasing unemployment rates, if the unemployment rate increases, productivity will also decrease, resulting in increased poverty rates.
According to (M. Kuncoro in reggi, 2014) explained that the measure of poverty is based on consumption which is then divided into two important elements, namely, (1) expenditures needed to buy minimum nutritional standards and other basic needs; (2) the number of other needs as a complement that varies in type and reflects the costs of participation in people's lives.
Apart from the difficulty of the community entering the workforce caused by the number of workers who have varied abilities and result in rising unemployment, there are other factors, namely rendahnya upah minimum regional yang diberikan kepada pegawai oleh pemilik usaha. Tinggi rendahnya pendapatan rumah tangga juga will affect the level of community welfare.
In East Java Province, the unemployment rate is still quite high despite a decline, the highest contributor to unemployment in East Java is a graduate of the population.
The difficulty of these scholars in obtaining employment is due to the many graduates who have theoretical abilities but are not supported by soft skills.
The ability of graduates who are not supported by the ability of the application results in companies not wanting to accept because according to speculation the company will have an impact on increasing costs or costs that must be incurred to provide training for prospective employees so that they prefer vocational graduate students who master the practice more field work.

RESEARCH METHODOLOGY
The type of this research is descriptive analysis research using quantitative data data to explain an object  are also in accordance with the economic theory put forward by kaufman "where the higher the minimum wage level hence there will be an increase in income so that the community has a high purchasing power and increasing welfare numbers and the implication is that the poverty rate will decrease (Pambudi, Saleh, & Priyono, 2016 and easily, the regional income will also increase and eventually it is expected to be one way to reduce and even eliminate poverty in East Java Province. 2. Regional minimum wages set by the Regional Government, especially East Java Province, are expected to be truly implemented and given to workers because it is expected that there will be an increase in the welfare and quality of life of the people and besides the minimum wage setting limits. which must be accepted with the workload borne so that transparency and justice emerge.
3. The East Java Provincial Government is also expected to be able to provide space for the poor, educated and educated people who do not have jobs. It is hoped that the government will build as many relationships as possible with the stake holders and provide training that can provide additional insight into knowledge and skills for community so that the community can be more productive so as to reduce the number of unemployment and consequently the poverty rate will decline.