The Influence of Decentralization with Autonomy Power, Decentralization with Authority Power, Factor Mobility, the Construction Cost Index, and Inflation Rate Toward Labor Absorption Rate. Implications toward Regional Inequity in Indonesia
The Influence of Decentralization with Autonomy Power, Decentralization with Authority Power, Factor Mobility, the Construction Cost Index, and Inflation Rate Toward Labor Absorption Rate. Implications toward Regional Inequity in Indonesia

Summary/Abstract: This study to examine the influence of decentralization with autonomy power, decentralization with authority power, factor mobility, the construction cost index, and inflation rate toward labor absorption rate and its implication toward regional inequity in Indonesia. The research method used in this research is the library research, as a form of research that utilizes the tools available literature in the form of books, journals, data and other empirical studies. Cluster analysis in this study is used to classify regencies’ regional inequity into two levels, namely low, and high regional inequity, also in economic growth in two levels, low, and high growth. Also the factor affecting such as decentralization with autonomy power, decentralization with authority power, mobility factor, construction cost index, and inflation rate in two levels (low, and high level). Based on the analysis, the result shows that decentralization with autonomy and authority power significantly effect to labor absorption. The highest value of decentralization, will decreasing the labor absorption rate. Vice versa, the lowest value of decentraliation, will increasing the labor absorption rate. Labor absorption rate as mediation variable in relationship between decentralization with autonomy and authority power significantly to regional inequity. This means that the higher the Decentralization with Authonomy and authority Power, with Labor Absorption Rate which the higher, the level of Regional Inequality will decrease.

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