Indonesian Journal of Economics, Social, and Humanities
Vol 4 No 2 (2022)

How do Economic Structures Reduce Poverty?

Widhi Ariestianti Rochdianingrum (Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya)
Nur Laily (Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya)



Article Info

Publish Date
21 Jun 2022

Abstract

Poverty reduction is a government program that is carried out annually. Various efforts were made to reduce poverty levels. One of the efforts that has been taken was to continue to maintain economic growth so that it continued to increase and grow. The existence of economic growth indicates a cycle of economic activity. One of the most important production factors for economic growth is the use of labor absorbed in economic sectors. If a large number of labor are absorbed in production activities, there is an increase in income in the family. The greater one's income level, the more one's welfare level increases. The increase in welfare that exists in society indicates that the poverty level is getting smaller. This research was conducted to test empirically on this matter. In this study, path analysis was used to determine the role of economic structure in reducing poverty with economic growth as a mediating variable. The results of this study indicated that economic growth can mediate the economic structure in reducing poverty levels through the absorption of labor in economic sectors and the resulting increase in output in each economic sector.

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Journal Info

Abbrev

ijesh

Publisher

Subject

Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Indonesian Journal of Economics, Social, and Humanities (IJESH) is a peer-reviewed academic journal of studies in the field of Economics, Social, and Humanities studies, both theories and practices published biannually in January and July by Research and Community Service Institution of Universitas ...