Determinant Analysis of the Tourism Sector’s Influence on Labor Absorption in East Java
Abstract
East Java Province constitutes the second-largest economic hub in Indonesia, supported by a substantial population base. Despite this advantage, the region's labor absorption remains suboptimal. Addressing this challenge requires the optimization of key economic sectors with high potential for employment generation. The tourism sector emerges as one of the leading sectors capable of contributing significantly to labor market expansion. This study aims to examine the determinants of the tourism sector that influence labor absorption in East Java. Employing a quantitative research design, the study utilizes panel data regression analysis. This study examines the relationship between the number of tourist attractions, restaurants, and hotels and the level of labor absorption in the tourism sector. The empirical findings demonstrate that all three variables have a statistically significant effect on labor absorption. These results underscore the strategic role of tourism development as an effective instrument for enhancing employment opportunities and supporting regional economic growth.
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