Journal of Islamic Economic Laws
Vol. 7 No. 01 (2024): January

Socio-Economic Determinants of Individual Muslim Zakat Payment Behavior in Indonesia: Analysis of Indonesia Family Life Survey (IFLS) Dataset

Durohman, Hapid (Unknown)
Andrian Sutisna, Fajar (Unknown)
Yuka Anugrah, Muhammad (Unknown)
Baharuddin, Andi Zamakhsyari (Unknown)



Article Info

Publish Date
13 Mar 2024

Abstract

Zakat is one of the pillars of Islam and holds significant potential in Indonesia. However, the collected amount remains below its potential due to the neglect and perceived insignificance of zakat payments by many Muslims. Therefore, understanding socio-economic behaviors and factors influencing individual decisions to pay zakat is crucial. This research investigates the determinants of socio-economic factors on individual zakat behavior, using data from the 2014 Indonesian Family Life Survey (IFLS) focusing on individuals aged 15 and above. Probit regression methodology is employed to examine individual decisions on zakat payments, utilizing STATA 17 for analysis. The findings indicate that individuals with higher socio-economic status are more likely to pay zakat, as evidenced by variables such as gender, household size, age, home ownership, loans, years of schooling, income, religiosity, and occupation significantly influencing contributions. However, variables like place of residence and marital status do not significantly impact payment decisions. Research implications highlight the need for targeted interventions and educational programs to enhance zakat awareness and compliance, especially among individuals with lower socio-economic status.

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Journal Info

Abbrev

jisel

Publisher

Subject

Religion Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Journal of Islamic Economic Laws (JISEL) is published by the Department of Islamic Economic Laws, Faculty of Islamic Studies, Universitas Muhammadiyah Surakarta. The journal provides a platform for scholarly research that bridges theoretical perspectives and practical developments in the field of ...