Life reality in the industrialized world: The effects of low wages on workers’ welfare

¹ Industrial Engineering, Industrial Technology Departement, Universitas Atma Jaya Yogyakarta, Indonesia
² Industrial Engineering, Industrial Technology Departement, Universitas Atma Jaya Yogyakarta, Indonesia
³ Industrial Engineering, Industrial Technology Departement, Universitas Atma Jaya Yogyakarta, Indonesia

^* Corresponding author: aureliahillary19@gmail.com

Abstract

The disparity between regional minimum wages and inflation rates remains a significant issue in the industrialized world. Even though various parties have tried to solve this thorny problem theoretically and practically, no actual implementation can solve it thoroughly. Whereas in the fast-paced modern world, wages are one of the determinants of a worker’s well-being. In Indonesia, the Special Region of Yogyakarta is the region with the second lowest minimum wage, in the range of less than two million rupiahs per month, two times lower than Jakarta the capital city. Culturally, the native people also feel that low wages affect their quality of life (besides their belief in keeping Jogja’s authenticity as a city of heritage and education). This research is conducted in literature study supported by Maslow theory hierarchy of needs and the results of researchers’ naturalistics observations. Supported by early social scientist theory, the author reveals that there is a relationship between income and one’s level of satisfaction and quality of life. People with lower income levels have higher levels of life satisfaction although their economic, physical, and psychological well-being is lower. In the end, this paper will implicate to increase public understanding of workers’ well-being.