| dc.description.abstract | The oil palm plantation sector is the sector that absorbs the most labor on the
island of Sumatra. This study aims to test Lewis' theory on the oil palm plantation
sector on the island of Sumatra. The employment in the oil palm plantation sector
is a demand for labor that will increase output and profits in the oil palm
plantation sector, so as to generate capital accumulation, increase investment and
production capacity on the island of Sumatra. This study modifies Lewis' theory
by adding supporting variables. This study looks at the effect of the minimum
wage variable, General Allocation Fund (DAU), Human Development Index
(HDI), and production on the employment variable on the island of Sumatra. The
analytical method used is the panel data regression analysis method sourced from
BPS for a period of 10 years, namely 2011-2020 in 10 provinces on the island of
Sumatra. The estimation results show that the minimum wage variable has
negative effect which is insignificant to employment in the oil palm plantation
sector on the island of Sumatra, supporting the theory of wage efficiency. the
General Allocation Fund (DAU) variable has a positive effect which is significant
to employment in the oil palm plantation sector on the island of Sumatra,
supporting the derivative products of Pappas and Mark Hirschey. The Human
Development Index (HDI) variable has a positive effect which is significant to
employment in the oil palm plantation sector on Sumatra Island supporting Gary
S. Becker's theory of human development (human capital theory). The production
variable positive effect which is insignificant to employment in the oil palm
plantation sector on the island of Sumatra, supporting the theory of production
with two changing factors. The results show that Lewis's theory applies, which
the demand for labor in the oil palm plantation sector on the island of Sumatra is
a demand for labor that will increase output and profits in the oil palm plantation
sector, so that it can generate capital accumulation, increase investment and
production capacity on the island of Sumatra. | en_US |
