How Population, Economic, Inequality and Unemployment Contribute Affect Indonesian’s Poverty

Willy Hutabarat; Sofyan Syahnur; Taufiq C Dawood

doi:10.56225/ijassh.v2i1.92

Authors

Willy Hutabarat Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Darussalam, Banda Aceh, Indonesia
Sofyan Syahnur Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Darussalam, Banda Aceh, Indonesia
Taufiq C Dawood Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Darussalam, Banda Aceh, Indonesia

DOI:

https://doi.org/10.56225/ijassh.v2i1.92

Keywords:

poverty headcount, poverty gap, macroeconomic variables, poverty severity

Abstract

In the globalization era, poverty is one of the world's fundamental problems, especially in developing countries. With living standards often poor in developing countries, poverty will only get worse in the future. Thus, the current study investigates the relationship between poverty with population growth, economic growth, income inequality, and the unemployment rate in Indonesia. The data used is data from 33 provinces compiled by the Indonesian Central Bureau of Statistics. The results showed that population growth positively affected poverty severity. The economic growth variable has a positive effect on the poverty rate. Income inequality has a positive effect on the poverty gap and poverty severity. Also, the unemployment rate variable positively affects the poverty rate, poverty gap, and poverty severity. Based on these findings, it is suggested that the government maintain stable population growth, create an economy that all groups can enjoy, equitable distribution of infrastructure, social and economic development, and provide more employment opportunities. In addition, a poverty alleviation policy is needed that is sustainable from time to time.

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