ANALYSIS OF THE INFLUENCE OF SOCIAL-ECONOMIC FACTORS ON THE PERCENTAGE OF POVERTY IN CENTRAL JAVA PROVINCE IN THE PERIOD 2017-2024

Abstract

This study aims to analyze the effect of average years of schooling, open unemployment rate, district/city minimum wage, and labor force participation rate on the poverty percentage in Central Java. Poverty remains an important development issue because it is closely related to community welfare. This research uses a quantitative approach with secondary data obtained from Statistics Indonesia (BPS). The data used are panel data from 35 districts/cities in Central Java during the 2017–2024 period. The analytical method employed is panel data regression using the Fixed Effect Model (FEM) approach. The results show that average years of schooling has a positive and significant effect on the poverty percentage. The open unemployment rate also has a positive and significant effect on the poverty percentage. Meanwhile, the district/city minimum wage has a negative and significant effect on the poverty percentage. In addition, the labor force participation rate has a negative but insignificant effect on the poverty percentage. These findings indicate that educational factors, employment conditions, and wage policies play an important role in influencing poverty levels in Central Java.