Jurnal Manajemen Ekonomi dan Bisnis
Vol 4, No 1 (2025)

THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022

Simbolon, Zefanya Grace Enos (Unknown)
Sihombing, Pardomuan Robinson (Unknown)



Article Info

Publish Date
03 Oct 2025

Abstract

Education and age are two demographic factors that are believed to have an influence on individuals' economic conditions, including their purchasing power. Understanding the relationship between these variables is important in designing effective economic policies. The purpose of this study is to see how age and education level impact people's purchasing power in Indonesia. Purchasing power, which can be affected by demographic factors such as age and educational background, is an important indicator of a person's economic well-being. This study employs quantitative techniques using multiple linear regression analysis using cross-sectional data from 34 provinces in Indonesia in 2021. Secondary data sources include the Central Bureau of Statistics (BPS) and other relevant sources. The results showed that, with a coefficient of 0.352, education level has a positive and significant influence on purchasing power. This shows that the higher a person's level of education, the greater their ability to purchase goods and services. On the other hand, the age variable does not have a significant influence on purchasing power, but the productive age group of 25 to 55 years old seems to have better wealth. This result can be used by the government to increase people's purchasing power by making economic policies and programmes to increase access to education.

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Journal Info

Abbrev

JMEB

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Manajemen Ekonomi dan Bisnis (JMEB) adalah jurnal ilmiah yang diterbitkan oleh Program Studi Manajemen, Sekolah Tinggi Ilmu Ekonomi Graha Kirana, Medan, Indonesia. Jurnal ini terbit dua kali per tahun. Jurnal ini berisi artikel penelitian, pengembangan konseptual, tinjauan kritis yang ...