Priviet Social Sciences Journal
Vol. 5 No. 8 (2025): August 2025

Analysis of macroeconomic factors affecting poverty levels in Indonesia using a dummy regression model approach

Safitriani, Nur Rezky (Unknown)
Ambarwati, Valina (Unknown)
Jannah, Miftahull (Unknown)
Safitri, Nabila (Unknown)



Article Info

Publish Date
27 Aug 2025

Abstract

Poverty in Indonesia remains a complex macroeconomic issue, influenced by various social, economic, and regional disparities. This study employed a dummy variable regression model to analyze the factors affecting poverty more comprehensively, allowing for the identification of categorical geographic effects. This study examines the influence of the Gender Empowerment Index, Expected Years of Schooling, Gini Ratio, Open Unemployment Rate, and Formal Employment on the percentage of the poor population in Indonesia, while considering regional classifications in Western, Central, and Eastern Indonesia. The results show that the Gender Empowerment Index and proportion of Formal Employment have a significant negative effect on poverty, while the Gini Ratio has a significant positive effect. Additionally, the Western and Central regions exhibit significantly lower poverty rates than the eastern region. The dummy regression model explains 83,64% of the variation in poverty across provinces, making it a relevant basis for formulating region-specific and macro-economically informed poverty alleviation policies.

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Journal Info

Abbrev

PSSJ

Publisher

Subject

Economics, Econometrics & Finance Education Environmental Science Law, Crime, Criminology & Criminal Justice Social Sciences

Description

PSSJ: Priviet Social Sciences Journal is an open access, monthly peer-reviewed international journal published by PRIVIETLAB. It provides an avenue to academicians, researchers, managers and others to publish their research work that contributes to the knowledge and theory of Social Sciences. PSSJ ...