Analysis of the Effect of Wages and Reduction of Working Hours on Poverty in Indonesia with Gross Regional Domestic Product as Moderator

ABSTRACT

Poverty is an absolute or relative condition that causes a person or society in an area not to have the ability to meet their basic needs following certain values or norms that apply in society due to natural, cultural, or structural causes (Nugroho, 2004). [...]along with the times, the causal factors, indicators, and problems related to poverty have become increasingly complex. A country said to be poor is usually characterized by low per capita income, high population growth rates, and most of the workforce engaged in agriculture and shackled in a vicious cycle of poverty. (2000) identified the causes of poverty from an economic perspective, such as (1) unequal patterns of resource ownership that lead to unequal income distribution, (2) poverty arises due to differences in the quality of human resources, and (3) based on the vicious circle of poverty theory. If this happens continuously, the GRDP will show a regional economic growth decline. [...]there is an increase in poverty in the community. 2.2.Wages According to Law Number 13 of 2013 concerning Employment, wages are the rights of workers received in the form of money as a reward from the employer, which are determined and paid according to an employment agreement or statutory regulations, including allowances for workers and their families for a job and/or service that has been or will be performed.