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Journal : Hasanuddin Economics and Business Review

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Urbanization and Elderly Welfare: Dynamic Evidence from Indonesia Dwipatna, I Made Jyotisa Adi; Andriani, Shadry; Regina; Darwin, Dirmansyah; Sumarwadji, Hafid
Hasanuddin Economics and Business Review VOLUME 9 NUMBER 3, 2026
Publisher : Faculty of Economics and Business, Hasanuddin University, Makassar, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26487/hebr.v9i3.6710

Abstract

This study examines the relationship between urbanization and elderly welfare in Indonesia by integrating social, economic, and demographic dimensions, addressing the widely held assumption that urban development automatically enhances the well-being of older populations. Using balanced panel data from 34 Indonesian provinces for the period 2017–2022, obtained from the Indonesian Central Bureau of Statistics and the Ministry of Health, the study employs a dynamic panel model estimated through the Generalized Method of Moments (GMM) to capture short- and long-term effects while accounting for endogeneity. The results indicate that past elderly welfare conditions do not significantly influence current welfare levels. Urbanization is found to have no statistically significant effect on elderly welfare in either the short or long term. In the short term, health facility availability, poverty levels, and the proportion of elderly individuals negatively affect elderly welfare, whereas economic well-being exerts a positive influence. In the long term, economic well-being remains a key positive determinant, while the proportion of elderly individuals continues to have a negative effect. Overall, the findings demonstrate that elderly welfare in Indonesia is shaped primarily by socioeconomic factors rather than by the pace of urbanization. The study contributes original policy-relevant insights by challenging urbanization-centered development strategies and emphasizing the importance of targeted economic empowerment and inclusive social protection systems to improve elderly welfare.
Co-Authors Agustinus Agustinus Ahmad Hidayat Andi Samsir Asriati Astury, Sri Ayni Kamaruddin, Citra Ayu, Duni Azzahra, Yolanda D. N. Putri, Dini Darwin, Dirmansyah Dupri Dwi Kartini Dwi Riyanti Endang Susilawati Endang Susilawati Eni Rosnija Eusabinus Bunau FAJRINA, SUCI Faustine, Gredel Felicia Kurniawan, Felicia Fidela, Wita Hafid Sumarwadji I Made Jyotisa Adi Dwipatna Irwandi Irwandi Irwandi Irwandi Isni Yulia Nur Jatie K. Pudjibudojo K. Sari, Jelly Karen Liza Luwandi Suhartono M. Riko Anshori Prasetya Mukhammad Idrus Nabila Nabila, Nur Isri Afra Nurafni Oktaviyah Nurul Puspitasari P. Ningky, Yiyin Pieter K. Malinton Pratiwi, Della Anugrah Rahayu Apriliaswati Rahim, Abd Rahmizal, Maizul Riki Ryketeng, Masdar Saragih, Triando Hamonangan Shadry Andriani Sri Astuty Sudarsono Suhartono, Janice SUMARNI Surmiyati Sutapa, Yohanes Gatot T. Berlian Utami, Anggitha Juliya Wanda Wardah Yuliani, Ummi Yuni Ahda Yunisa Astiarani Yusi Febriani Zhafira