Analysis of The Effect of Education Level, Economic Growth, and Unemployment Rate on The Poverty Rate In Sumatera Barat, Indonesia

Abstract

Poverty is a multidimensional problem that is of concern to all countries in the world. The purpose of this study is to look at the influence of education levels, economic growth, and unemployment rates on poverty rates in the West Sumatra Province of Indonesia. This study uses the Fixed Effect Square Dummy Variable / FEM LSDV approach with panel data which is a combination of 12 districts and 7 cities in West Sumatra Province with a span of time from 2010 to 2016. The results of the research conducted indicate that there are negative influences but not significant between education level variables and poverty rates, while economic growth variables have a negative and significant effect on poverty rates in West Sumatra Province. As with the unemployment rate variable which shows a positive and significant influence on the level of poverty in the Province of West Sumatra. Based on the results of this study, the authors suggest the need to optimize policies related to efforts to increase the level of education, economic growth in addition to emphasizing the unemployment rate in the West Sumatra Province of Indonesia in order to welcome the current digital era.