Macroeconomic Determinants of Labor Absorption in Indonesia: The Role of Corruption as a Moderator and the Islamic Human Development Index (I-HDI) Variable
DOI:
https://doi.org/10.30993/tifbr.v20i1.478Abstract
This study aims to examine labor absorption in Indonesia over the period 2021–2024. It also seeks to investigate the effects of economic growth, foreign direct investment (FDI), government expenditure, the Islamic Human Development Index (I-HDI), and inflation-moderated by corruption on labor absorption. The research employs a quantitative approach with hypothesis testing. Moderated Regression Analysis (MRA) is utilized as the primary analytical tool. The results reveal that economic growth, FDI, the I-HDI, and inflation exert significant effects on labor absorption, whereas government expenditure shows no significant impact. Furthermore, corruption significantly moderates the relationship between FDI, the I-HDI, and inflation with labor absorption. In contrast, corruption non-significantly moderates the correlation between economic growth or government expenditure and labor absorption.
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