Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island

This study investigates the determinants of labor migration from Sumatra Island, focusing on key factors such as per capita income, provincial minimum wage, unemployment rates, and education levels. Using panel data from 2017 to 2021 across ten provinces, the analysis employs a random effects model...

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Main Authors: Dirta Pratama Atiyatna, Hamira, Yunisvita
Format: Article
Language:English
Published: Fakultas Ekonomi Universitas Sriwijaya 2024-12-01
Series:Sriwijaya International Journal of Dynamic Economics and Business
Online Access:https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/597
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author Dirta Pratama Atiyatna
Hamira
Yunisvita
author_facet Dirta Pratama Atiyatna
Hamira
Yunisvita
author_sort Dirta Pratama Atiyatna
collection DOAJ
description This study investigates the determinants of labor migration from Sumatra Island, focusing on key factors such as per capita income, provincial minimum wage, unemployment rates, and education levels. Using panel data from 2017 to 2021 across ten provinces, the analysis employs a random effects model to assess these variables' impact on migration patterns. The results reveal that the provincial minimum wage significantly influences labor migration, while per capita income, unemployment rates, and education levels do not show a substantial effect. Despite relatively higher wages in provinces such as Riau and West Sumatra, economic instability persists, prompting workers to seek better opportunities abroad. These findings emphasize the pivotal role of wage disparities in driving labor migration from Sumatra, particularly toward international labor markets, underscoring the need for more equitable economic policies to mitigate the pressures of outbound migration. 
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publisher Fakultas Ekonomi Universitas Sriwijaya
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series Sriwijaya International Journal of Dynamic Economics and Business
spelling doaj-art-d52f2baef4fa433e95aa648963a9bcfc2025-08-20T01:58:45ZengFakultas Ekonomi Universitas SriwijayaSriwijaya International Journal of Dynamic Economics and Business2581-29042581-29122024-12-018310.29259/sijdeb.v8i3.291-302Determinants of Labor Migration to International Labor Markets: A Study of Sumatra IslandDirta Pratama Atiyatna0Hamira1Yunisvita2Universitas SriwijayaUniversitas SriwijayaUniversitas Sriwijaya This study investigates the determinants of labor migration from Sumatra Island, focusing on key factors such as per capita income, provincial minimum wage, unemployment rates, and education levels. Using panel data from 2017 to 2021 across ten provinces, the analysis employs a random effects model to assess these variables' impact on migration patterns. The results reveal that the provincial minimum wage significantly influences labor migration, while per capita income, unemployment rates, and education levels do not show a substantial effect. Despite relatively higher wages in provinces such as Riau and West Sumatra, economic instability persists, prompting workers to seek better opportunities abroad. These findings emphasize the pivotal role of wage disparities in driving labor migration from Sumatra, particularly toward international labor markets, underscoring the need for more equitable economic policies to mitigate the pressures of outbound migration.  https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/597
spellingShingle Dirta Pratama Atiyatna
Hamira
Yunisvita
Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island
Sriwijaya International Journal of Dynamic Economics and Business
title Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island
title_full Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island
title_fullStr Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island
title_full_unstemmed Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island
title_short Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island
title_sort determinants of labor migration to international labor markets a study of sumatra island
url https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/597
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AT yunisvita determinantsoflabormigrationtointernationallabormarketsastudyofsumatraisland