The Effects of Minimum Wage, Labor Force, and Economic Growth on Local Revenue of District/City in Bali Province from 2017 To 2021

ABSTRACT: What is known as Regional Original Revenue (PAD) is the main source of income for local governments.revenues of a region that reflects the level of regional independence. The larger the Original Local Government Revenue is, the more it indicates the region is able to implement fiscal decentralization and reduce dependence on the central government.Covid-19 has resulted in impacts on its economy in Bali. This study involved data from 9 regencies and cities in Bali, with a total of 45 data points obtained from the years 2017 to 2021, using panel regression analysis. The results of the panel data regression analysis showed that the chosen model was Fixed Effect Model (FEM). Based on the research results, it was found that simultaneously, minimum wage (UMR), labor force, and economic growth significantly influenced the Original Local Government Revenue (PAD). The partial results indicate that minimum wage and economic growth have a positive and significant impact on regional original revenue. On the other hand, the labor force has a negative and insignificant impact on regional revenue, specifically in the case of Bali province.

Keywords: The Influence of Minimum Wage, Labor Force, Economic Growth on Local Revenue , Bali