This research is aimed to (1) get the empirical evidence about the effect of micro, small and medium enterprises and the importance of existence of micro, small and medium enterprisesas one of effort to decreasing the poverty in Simalungun District, (2) to know about the effect of labor absorption to decreasing the poverty in Simalungun District (3) to know the effect of non formal education level to decrease the poverty in simalungun district. The data that used in this research is primary data with the population number is 6.445 micro, small and medium enterprises and the sample is 40 respondents with data collection technique using questioner. The data analysis model that used is multiple linear regression with e-views 6 program. While the suitability test conducted with using R-Square, Partial Test and Simultan Test. The results of this research found that (1) the value of coefficient regression on micro, small and medium enterprises variable (-0,363), it means if the micro, small and medium enterprises variable is increased 1 unit, while the labor absorption variable and non formal education level are permanent, then the poverty (Y) will decrease in the amount of 36,34 percent. (2) the value of coefficient regression on labor absorption variable (-0,194), it means if labor absorption variable is increased 1 person, while the micro, small and medium enterprises variable and non formal education level are permanent, then the poverty (Y) will decrease in the amount of 19,46 percent. (3) the value of non formal education level variable (0,012), it means if non formal education level is increased 1, while the micro, small and medium enterprises variable and labor absorption are permanent, then the poverty (Y) will increase in the amount of 1,27 percent.
Indonesia's poverty condition in March 2019 recorded at 9.41 percent. Supposedly, Indonesia reaches the RPJMN target where the poverty level is planned at a 7-8 percent level. The High levels of rural poverty compared to urban areas exceeded the percentage of national poverty. Low wages are also an indication that the problem of poverty occurs continuously. The purpose of this research is to know how socio-economic variables such as human development, unemployment, wage, and inequality can affect poverty reduction in Indonesia. This research uses secondary data obtained from the website of Statistics Indonesia (BPS) and the Databoks Katadata website. This study uses cross-section data with 34 provincial observations in the year 2019. This research used econometric methodologies with the regression of Ordinary Least Square as an analysis tool. This research show that poverty in Indonesia is still very dominant in the island of Papua, in the provinces of Papua and West Papua and in the island of Nusa Tenggara, in the provinces of West Nusa Tenggara and East Nusa Tenggara. Human development has a negative effect where every human development increase by 1 percent will reduce poverty in Indonesia by 5.69 percent. The declining unemployment rate has contributed to poverty reduction in Indonesia by 0.34 percent. Wages, in this case, can reduce poverty. Increasing wages by 1 percent can reduce poverty by 1.08 percent and vice versa. Reducing inequality by 1 percent can reduce poverty by up to 1.88 percent.Keywords: poverty, HDI, unemployment, wage, inequality
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