The Impact of GRDP and RWP on Regional Minimum Wage

The purpose of this research was to find out the effect of the percentage in development of
Pematangsiantar city’s regional minimum wages, and the problem in this study how GRDP and RWP affect
on the percentage of development of Regionl Minimum Wage at Pematangsiantar City. The method used
was quantitative descriptive analysis. Data analysis used were Classic Assumption Test, Multiple Linear
Regression, Correlation Coefficient, Determination, F-test and t-test object on RMW at Pematangsiantar
city. Finding of research and results of the study can be summarized as follows: 1). The results of the
multiple linear regression analysis test are that the GRDP and RWP had a positive effect on the RMW of
Pematangsiantar City, 2). The results of the correlation coefficient indicate that the GRDP and RWP of
Pematangsiantar City on its RMW were at a very strong level, while the coefficient of determination of
67.5% at high or low of the minimum wages can be explained by the GRDP and RWP, while the remaining
of 32.5% was influenced by other factors which were not included in this study, 3). Hypothesis Test for Ftest
indicates that the GRDP and RWP influences significantly on Pematang city’s RMW, and for the t- test
indicates that the GRDP and RWP had a positive and significant effect on the RMW in Pematangsiantar
City from 2005 to 2018. This means that as the GRDP increases, the value of setting Pematangsiantar City's
minimum wage in the following year will also increase, and vice versa. The increase of laborers/workers
demands will affect the standard of regioanalwages that will be determined, this happens because wages
will always adjust to the labor market demand. The stipulation of the minimum wage, it has an impact on
GRDP in Pematangsiantar City, because the consumptive rate will be carried out in the place where it gets
paid.