Factors affecting labor migration abroad in Indonesia

Abstract

Labor migration abroad is one of the alternatives to solve unemployment. However, overseas migration does not just happen, many factors influence it. This research aims to determine the effect of GRDP per capita, open unemployment rate, poverty, and provincial minimum wage on overseas labor migration in Indonesia at 2017-2022. This research aims to determine the influence of GRDP per Capita, Open Unemployment Rate, Poverty, and Provincial Minimum Wage on Overseas Labor Migration in Indonesia. The type of data used in this research is quantitative data and the data used is data in the form of numbers, namely secondary. This data is then processed using eviews 12 and analyzed using panel data analysis techniques with REM (random effect model) which is selected based on the results of the chow test, hausman test and lagrange multiplier. The estimation results show that the GRDP per capita variable has a positive and significant effect on overseas labor migration in Indonesia. The open unemployment rate variable and provincial minimum wage variable have a negative and significant effect on overseas labor migration in Indonesia. The poverty variable has a negative and insignificant effect on overseas labor migration in Indonesia.