Putri Yasmin Iskandar
Universitas Tadulako

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Analysis of the Influence of Average Years of Schooling, Labor Force Participation, GDP Per Capita and Boss Fund on Poverty In Central Sulawesi Putri Yasmin Iskandar; Yohan; Albetris; Yunus Sading; Failur Rahman; Nurnaningsih
Al-Kharaj: Journal of Islamic Economic and Business Vol. 8 No. 4 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi
Publisher : LP2M UIN Palopo

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Abstract

Poverty alleviation in Central Sulawesi Province is still faced with the challenge of spatial disparity between regions even though the aggregate poverty trend continues to show a decline. This study aims to analyze the influence of Average Years of Schooling (RLS), Labor Force Participation Rate (TPAK), Gross Regional Domestic Product (GDP) Per Capita, and School Operational Assistance (BOS) allocation on poverty levels in Central Sulawesi. A quantitative approach with a causal design is used through a panel data method covering 12 districts and 1 city in the 2023-2025 period. Macro secondary data in this study is sourced from official publications of BPS and the Central Sulawesi Provincial Education Office. Hypothesis testing was carried out using Fixed Effect Model (FEM) panel data regression corrected using Driscoll-Kraay Standard Errors to overcome violations of autocorrelation assumptions in the model. The results of the estimation prove that RLS, TPAK, and GDP per capita partially have a negative and significant effect on poverty levels. On the other hand, the BOS Fund variables show anomalies in the form of positive and significant influences. In conclusion, improving the quality of human resources, expanding labor participation, and growing regional income are proven to be crucial in reducing the percentage of poor population, while the allocation of BOS funds is more reflective of the affirmative policy function for regions with high poverty rates. The empirical findings of this study contribute to strengthening the application of Amartya Sen's Capability Theory in regional economic evaluation and can be a basis for local governments in evaluating the accuracy of the goals of the education sector social safety net program.