The effect of education level and unemployment rate on poverty in Deli Serdang regency

Poverty is a complex problem that is multidimensional and affects many people around the world, including Indonesia. In Indonesia, poverty is still high, especially in underdeveloped rural and urban areas. Low education levels and high unemployment exacerbate poverty conditions as they affect access to decent work and adequate income. In Deli Serdang Regency, North Sumatra, despite having abundant natural resources, the poverty rate is still high. Expected solutions include improved access and quality of education, increased job opportunities, entrepreneurship promotion, access to better health and social services, and effective redistribution policies. This study aims to determine the influence of education, unemployment, HDI, and income on poverty in Deli Serdang Regency and to determine the influence of wages, consumption, and poverty on income simultaneously on income in Deli Serdang Regency. The approach used in this study is a quantitative approach sourced from secondary data in a time series, namely from 2013 to 2023. The data analysis model in this study uses a simultaneous equation model. The results of the simultaneity test showed that education had a positive and significant effect on poverty, while unemployment, HDI and income had a negative and insignificant effect on poverty. And poverty has a positive and significant effect on income, while consumption and wages have a negative and insignificant effect on income.

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Publication Details

Journal
International Journal of Science and Research Archive
Published
2024-10-14
DOI
https://doi.org/10.30574/ijsra.2024.13.1.1901
Primary Topic
Economic Growth and Fiscal Policies
Type
article
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article

The effect of education level and unemployment rate on poverty in Deli Serdang regency

Lia Nazliana Nasution, Iwan Syahputra
International Journal of Science and Research Archive
Economic Growth and Fiscal Policies
article

The effect of education level and unemployment rate on poverty in Deli Serdang regency

Lia Nazliana Nasution, Iwan Syahputra
article en

Abstract

Poverty is a complex problem that is multidimensional and affects many people around the world, including Indonesia. In Indonesia, poverty is still high, especially in underdeveloped rural and urban areas. Low education levels and high unemployment exacerbate poverty conditions as they affect access to decent work and adequate income. In Deli Serdang Regency, North Sumatra, despite having abundant natural resources, the poverty rate is still high. Expected solutions include improved access and quality of education, increased job opportunities, entrepreneurship promotion, access to better health and social services, and effective redistribution policies. This study aims to determine the influence of education, unemployment, HDI, and income on poverty in Deli Serdang Regency and to determine the influence of wages, consumption, and poverty on income simultaneously on income in Deli Serdang Regency. The approach used in this study is a quantitative approach sourced from secondary data in a time series, namely from 2013 to 2023. The data analysis model in this study uses a simultaneous equation model. The results of the simultaneity test showed that education had a positive and significant effect on poverty, while unemployment, HDI and income had a negative and insignificant effect on poverty. And poverty has a positive and significant effect on income, while consumption and wages have a negative and insignificant effect on income.

International Journal of Science and Research ArchiveVol. 13(1)
Universitas Pembangunan Panca Budi Medan (ID)
Openalex Percentile: Top 78%
Economic Growth and Fiscal Policies
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