Equity: Jurnal Ekonomi
Vol 12 No 1 (2024): Equity : Jurnal Ekonomi

The Effect of HDI and Unemployment Rate on Poverty in the Riau Islands

Suganda, Azhar (Unknown)
Ramadhini, Novi (Unknown)
Harahap, Putri Nabila (Unknown)
Nugrahadi, Eko Wahyu (Unknown)
Gultom, Grace (Unknown)



Article Info

Publish Date
25 Jun 2024

Abstract

Poverty in the Riau Islands Province will be studied from 2018 to 2023 with a focus on how it affects HDI and unemployment rates. We analyzed secondary data obtained by the Central Statistics Agency (BPS) using quantitative methods in this research which uses a documentation approach. Random Effect Model (REM) was selected as the best estimation model after a series of panel data tests, including Chow, Hausman, and Legrange Multiplier tests. Unemployment has a significant and positive effect on poverty according to this research (coefficient = 3971.224). This means there is an increase of 39% in the underprivileged population for every 1% increase in the unemployment rate. There is a positive and statistically significant correlation between HDI and poverty (r=2086.092), which shows that a 1% increase in HDI means an increase in poverty of 20%. The findings from this study show increasing employment opportunities and improving the quality of human resources as potential efforts to reduce poverty in the Riau Islands Province.

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Journal Info

Abbrev

equity

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Equity: Jurnal Ekonomi [p-ISSN 1978-3795, e-ISSN 2721-6721] is double-blind peer-reviewed, open access, a scientific journal that contains the results of theoretical research and studies on economic and development issues. The issue is related to: literature review, modeling results in economics, ...