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Income elasticity of food expenditure among urban households in Sulawesi: Evidence from engel’s law Nurhaliza, Siti; Ichwan, Mohamad; Yunus, Rita; Taqwa, Edhi; Sading, Yunus
Priviet Social Sciences Journal Vol. 6 No. 2 (2026): February 2026
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v6i2.1424

Abstract

This study examines the responsiveness of food expenditure shares to income changes among urban households in Sulawesi using income elasticity analysis. Employing cross-sectional microdata from the 2023 National Socio-Economic Survey (SUSENAS), comprising 13,933 urban households across six Sulawesi provinces, we calculate arc elasticity for nine income group transitions. The results reveal predominantly negative elasticity values ranging from -0.008 to -0.504, confirming patterns consistent with Engel’s Law. The elasticity pattern exhibits an inverted-curve shape: weak in low-income groups (-0.0103 to -0.091), strengthening in middle-income groups (-0.2 to -0.5), and moderating in the highest transition (-0.059 to -0.268). This reflects critical threshold effects, where middle-income households demonstrate the strongest responsiveness in reallocating expenditures from food to non-food categories. Substantial interprovincial variations emerged, with Gorontalo exhibiting the strongest elasticity (-0.504), while Central Sulawesi showed unique patterns, including positive elasticity at specific transitions. Elasticity values consistently below one confirm food as a necessary good across all provinces. These findings provide crucial policy insights: low-income households require targeted protection through subsidies and social assistance, whereas middle-income households would benefit most from income growth policies. Provincial heterogeneity underscores the need for context-specific rather than uniform regional interventions.
Analysis of educated unemployment in Sulawesi: A study of 6 provinces during the period 2014–2023 Nane Grasela; Kalvin A. Parinding; Mohamad Ichwan; Sitti Rahmawati; Laendatu Paembonan
Priviet Social Sciences Journal Vol. 6 No. 8 (2026): August 2026
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v6i8.1843

Abstract

This study examines the effects of Provincial Minimum Wage (UMP), Government Expenditure on Education, and the ICT Development Index (IP-TIK) on educated unemployment across six Sulawesi provinces from 2014 to 2023. Using panel data regression on secondary data sourced from the Central Statistics Agency (BPS), the Fixed Effect Model was selected as the best-fit specification based on the Chow Test and Hausman Test. Simultaneously, all three variables significantly influence educated unemployment, with an F-statistic of 141.8002 and an Adjusted R-squared of 0.9502. Partially, UMP exerts a positive and significant effect at the 10 percent significance level, indicating that minimum wage increases tend to elevate educated unemployment as firms adopt more selective recruitment practices. Government expenditure on education shows a negative and significant effect at the same significance level, suggesting that higher education spending reduces educated unemployment, though its impact remains suboptimal given budget realization consistently below the constitutional 20 percent mandate and the inherently long-term nature of education investment returns. IP-TIK, by contrast, yields no significant effect and carries a positive coefficient, reflecting labor substitution by technology and the absence of a sufficient digital development threshold to trigger structural labor market transformation in the region. These findings underscore the need for regionally calibrated minimum wage policies, improved realization of education budgets, and accelerated ICT infrastructure investment as complementary strategies for reducing educated unemployment in Sulawesi.