Endang Rostiana, Andika Reka Sagara


The purpose of this study is to analyzing the elasticity of labor demand of the labor-intensive micro-small scale convection enterprises. Sixty seven entrepreneurs were interviewed to collect the primary data. Natural logarithm regression result showed that labor demand was inelastic to the number unit of machines, number unit of output, and firm age. These elasticity coefficient results showed that unit of machines was complementary for labor. The wage elasticity of labor demand was negative. The increase in production output will lead to increase in labor demand. Firm age was contributed positively to the increase in labor demand.

Keywords: elasticity of labor demand, small-micro scale enterprises, convection

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DOI: https://doi.org/10.26593/be.v22i1.3324.11-26


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