ANALYSIS OF THE EFFECT OF GRDP AND INFLATION ON THE MW OF NORTH SUMATRA PROVINCE IN 2000-2018

Abstract

Wage/net salary is the compensation received for a month by workers/employees in the form of money or goods paid by the company/office/employer. In-kind rewards are valued at local prices. The purpose of this study was to determine how the influence of GDP and inflation on the minimum wage in North Sumatra. This research method is a quantitative method using secondary data obtained from the Central Statistics Agency. The model used in this research is multiple regression analysis model with eviews program. From this study, it can be seen that the GRDP independent variable gives a positive direction to the MW. This is indicated by the positive value of the regression coefficient on the GDP variable, which is 0.506748 while the second independent variable, namely inflation, gives a negative direction to the dependent variable of the MW, this is indicated by the regression coefficient value of the negative inflation-free variable, which is -0.012338.