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

Iwan Syahputra and Lia Nazliana Nasution *

Master of Economics, Graduate Program, Universitas Pembangunan Panca Budi., Indonesia.
 
Research Article
International Journal of Science and Research Archive, 2024, 13(01), 2328–2335.
Article DOI: 10.30574/ijsra.2024.13.1.1901
Publication history: 
Received on 01 September 2024; revised on 10 October 2024; accepted on 12 October 2024
 
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.
 
Keywords: 
Education; Unemployment; HDI; Income; Wages; Consumption; Poverty
 
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