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Journal : International Journal of Business, Economics

The Role of Employment Opportunities in Mediating the Impact of Human Capital and Wages on Provincial Poverty in Indonesia Mulyadi, Aka; Majid, M. Shabri Abd.; Suriani, Suriani
International Journal of Business, Economics & Financial Studies Vol. 2 No. 2 (2024): November 2024
Publisher : Indonesia Academia Research Society

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62157/ijbefs.v2i2.33

Abstract

This study aims to examine the role of employment opportunities in mediating the effects of human capital and wages on poverty across provinces in Indonesia. This study uses secondary annual data from 34 provinces spanning 2015 to 2022 (panel data). The study employs panel data regression analysis for model estimation, with path analysis and the Sobel test used to assess the mediating role. The findings indicate that human capital has a significant negative direct and indirect impact on poverty through employment opportunities. In contrast, wages do not directly affect poverty but have a significant indirect effect through employment opportunities. Employment opportunities negatively influence poverty and act as a partial mediator between human capital and poverty and a complete mediator in the relationship between wages and poverty. Based on these results, it is recommended that policies aimed at enhancing human capital and increasing employment opportunities be implemented concurrently to reduce short- and long-term poverty. Additionally, it is advised that the government prioritize increasing the minimum wage to strengthen the impact of employment opportunities in alleviating poverty over time. Policies that simultaneously target improvements in human capital, employment opportunities, and minimum wages are crucial for significantly reducing poverty across Indonesia's 34 provinces.
Co-Authors - Afrizal A Sakir, A Sakir A. Sakir, A. Abd Karim, Mohd Rahimie bin Agustina, Maulidar Amir, Fakhrurrazi Amri Amri Andri Soemitra Anggara, Windu Azhar, Thifal Bakri Abdul Karim Batubara, Zulfa Khairina Benazir ., Benazir Bismi Khalidin Chudriana Putri, Rafika Cut Windaswari, Cut Darwanis Darwanis Desy Ratnasari Dewi, Annisa Keumala Dinda, Lidyana Dwita Sakuntala Eka Octavian Pranata Erwin SP, M. Fadhil, Rahmat Faisal Faisal Fitrah Khairi Fredinan Yulianda Fuadi Fuadi Garini, Fitri Ardiya Gea, Dalmaisyah Ghazali Syamni Halim, Hendra Hartomi Maulana Idris, Sofyan Indra Yadi Putra Ismail Ismail Ismail Isnaini Harahap Kesuma, T. Meldi Khairullah, Aulia Kresna Riady, Dwi Kusmilawaty, Kusmilawaty Lada, Suddin Lubis, Fahdi Saidi Maira, Hayatun Marliyah, Marliyah Mazwan, Rasmuna Mohd. Azmi Omar Muazzinah Muazzinah Muhammad Arfan Muhammad Haris Riyaldi, Muhammad Haris Muhammad Umar Maya, Putra Muharman Lubis Mulyadi Adam, Mulyadi Mulyadi, Aka Murkhana, Murkhana Mutia, Ratna Nasir, M. Fadhil Naziruddin Abdullah Ni Made Purnami Nizam, Ahmad Nurlina, Eka Okri Handoko, Dodi Putri Bintusy Syathi, Putri Bintusy Raja Masbar Rasyimah Rasyimah Ridmailis, Ridmailis Ridwan Nurdin Riha Dedi Priantana Rita Handayani, Rita Riyaldi, M. Haris Ronald Rulindo Rosylin Mohd. Yusof Said Musnadi Sakir, A Salina Hj. Kassim Samsul Ariffin Abdul Karim Sari, Meutia Dwi Novita Sartiyah Sartiyah, Sartiyah Sasra, Said Fachrizal Sentosa, Dewi Suryani Shawab, Nabil Silvia, Vivi Siregar, Hilyati Inayah Siregar, M. Ridha Sitepu, Novi Indriyani Suriani Suriani Syahrizal, Teuku Muhammad Taufiq Carnegie Dawood Thahira, Zia ulina, sri Umuri, Khairil Venny Fraya Hartin Nst Wardhani, Izza Al Ula Zakiyah Kusuma Yani, Rina Novi Yusrizal Yusrizal Zaida Rizqi Zainul, Zaida Rizqi Zulfa Zulfa Zulhanizar, Said Zulkifli Zulkifli