The Dynamics of Indonesian Migrant Workers: Their Short- and Long-Term Impact

Authors

  • Edy Santoso http://orcid.org/0009-0001-5677-3489
  • Vebry Eka Kusuwardhani Faculty of Economics and Business, University of Jember
  • Fivien Muslihatinningsih Faculty of Economics and Business, University of Jember

DOI:

https://doi.org/10.15408/sjie.v14i2.46422

Keywords:

migrant workers, minimum wage, job opportunities, poverty

Abstract

Research Originality: This study integrates factors influencing Indonesian migrant workers into a Panel VECM model that captures both short- and long-term dynamics.

Research Objectives: This study investigates the factors that affect the short- and long-term migration of Indonesian migrant workers.

Research Methods: This study uses the Vector Error Correction Model (VECM) approach. Panel data were analyzed for six provinces on Java Island, covering the period 2008 to 2023.

Empirical Results: This study found significant positive effects of provincial minimum wage, employment opportunity rates, and poverty levels on the short-term migration of Indonesian migrant workers in Java. In the long term, all variables positively influenced Indonesian migrant worker migration, except for poverty, which had a non-significant effect.

Implications: These findings indicate an anomaly in the factors influencing the PMI. Therefore, we assert that policymakers in Indonesia must periodically review and adjust the UMP and implement effective price-control measures to ensure that workers’ basic needs are met at a reasonable cost of living.

JEL Classification: C33, F22, I32, J61, J62

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Published

2026-04-01

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How to Cite

The Dynamics of Indonesian Migrant Workers: Their Short- and Long-Term Impact. (2026). Signifikan: Jurnal Ilmu Ekonomi, 15(1). https://doi.org/10.15408/sjie.v14i2.46422