The Impact of Perceived Minimum Wage, Purchasing Power, and Economic Well-Being on Job Stability among Private Employees in Yogyakarta, Indonesia
Abstract
The purpose of this research is to examine job stability, a crucial factor impacting employee well-being. Various subjective perceptions, such as those related to the minimum wage, purchasing power, and economic welfare, can influence the job stability of private-sector employees. This study aims to analyze the influence of minimum wage perception, purchasing power perception, and economic welfare perception on the job stability of private employees in the Special Region of Yogyakarta.
Methodology:
This study employs a quantitative approach with a sample of 250 private employees in Yogyakarta, selected through random sampling. Data were analyzed using multiple regression and the SEM-PLS method.
Main Findings:
The results indicate that minimum wage perception significantly enhances job stability, whereas perceptions of purchasing power and economic welfare do not exert a significant influence. This suggests that private employees feel more secure in their jobs when they perceive the minimum wage as adequate, while their subjective assessments of broader economic conditions have less impact on stability. In conclusion, policies related to the minimum wage are more critical than perceptions of purchasing power or general economic welfare in sustaining job stability.
Application:
These findings can inform human resource strategies and public policy, particularly in regional labor planning and wage regulation, helping employers and policymakers design more effective employee retention programs.
Novelty/Originality:
This study presents a novel approach by integrating three perception-based variables (minimum wage, purchasing power, and economic welfare) to simultaneously assess their impact on job stability among private-sector employees. Unlike previous research that focuses on macroeconomic indicators such as unemployment or inflation, this study emphasizes subjective perceptions, an area that remains underexplored, particularly in the context of the Special Region of Yogyakarta.
Keywords: perception of minimum wage, purchasing power, economic well-being, job stability, private employees.
Full Text:
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