Title : THE EFFECT OF ECONOMIC GROWTH, MINIMUM WAGE, OPEN UNEMPLOYMENT RATE AND EDUCATION ON THE NUMBER OF POOR POPULATION IN DISTRICTS/CITIES IN EAST JAVA PROVINCE
Author : HAPSARI WIJI UTAMI
Universitas Airlangga
Item Type : Thesis (Thesis)
Abstract
Poverty is a multifaceted issue, linked to low income, illiteracy, poor health, gender inequality, and a poor environment (World Bank, 2010). Addressing poverty cannot be achieved in isolation from economic growth, minimum wages, unemployment, and education, as well as other issues explicitly linked to poverty. This study examines the impact of economic growth, minimum wages, unemployment, and education (average years of schooling) on the number of poor people in East Java, specifically across all districts/cities in East Java from 2008 to 2013. The purpose of this study is to analyze how and to what extent economic growth, minimum wages, unemployment, and education (average years of schooling) influence the number of poor people in East Java. This information can then be used as a basis for policymaking in addressing poverty in East Java. The data used in this study are secondary data obtained from the Central Statistics Agency (BPS) and the Manpower Office as supporting sources. The analysis method used in this study is the panel data regression analysis method with the FEM method with the help of Eviews 6 software. The results of this study indicate that the Economic Growth variable has a negative but not significant effect on the level of the number of poor people, the Minimum Wage variable has a significant negative effect on the number of poor people, the Open Unemployment Rate variable has a significant negative effect on the number of poor people and the Education variable (average length of schooling has a significant negative effect on the number of poor people in East Java.
Keywords: Total number of Poor Population, Economic Growth, Minimum Wage, Open Unemployment Rate, and Education