Consumption Patterns of Labors in Foreign-invested Factories in Indonesia (Study in Pasuruan Regency)

Abstract

This study tries to find out how labors in Pasuruan Regency spend their monthly payment. This study applies descriptive comparative method, while the analysis follows three rules of Engel’s Law. The result reveals that the first rule of Engel’s Law where ‘should the income increase, the percentage of expense for food is smaller’ is reflected, while the second and third rules that ‘the percentage of expense for cloths and houses is relatively stagnant and not relied upon the income level’ and ‘should the income increase, the percentage of expense for education, health, recreation, luxury and saving is increased’, respectively, are reflected to some extent.