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Abstract
This research aims to analyze the effect of provincial Minimum wage (UMP), PDRB, and investment in the industrial sector of labor absorption on Java island in 2010-2016. Data used is a data panel consisting of data time series 2010 – 2016 and cross section six provinces namely DKI Jakarta, West Java, Central Java, IN Yogyakarta, East Java, and Banten. The Anaalisis tool used is a data regression panel i.e. Fixed Effect Model (FEM). The results showed that UMP has a significant effect on the labor absorption of the industrial sector on Java Island in 2010-2016. While the PDRB and investment have a positive and significant effect on the labor absorption of industrial sectors in Java Island in 2010-2016. Through this research, the government expects more cautious and creating a conducive investment climate so that the value of PDRB is increasing.