International Journal of Social Science, Educational, Economics, Agriculture Research, and Technology (IJSET)
Vol. 5 No. 5 (2026): APRIL

INFLATION, EDUCATION, LABOR FORCE PARTICIPATION, AND POVERTY IN NORTH SUMATRA: EVIDENCE FROM 2005-2024

Reza Juanda (Universitas Malikussaleh)



Article Info

Publish Date
30 Apr 2026

Abstract

This study examines how inflation, education, and labor force participation influenced the poverty rate in North Sumatra Province during 2005-2024. Annual secondary data were obtained from Statistics of North Sumatra. Education was represented by the school participation rate for the 16-18 age group, while labor market involvement was measured by the labor force participation rate. Multiple linear regression was estimated with EViews 13 after testing residual normality, multicollinearity, serial correlation, and heteroskedasticity. Inflation had a positive and statistically significant coefficient (β = 0.112683; p = 0.0458). Education had a negative and significant coefficient (β = -0.273439; p < 0.001), and labor force participation also had a negative and significant coefficient (β = -0.299388; p = 0.0234). The model was jointly significant (F = 28.09907; p < 0.001) and explained 81.06% of the adjusted variation in poverty. The findings indicate that poverty reduction requires coordinated price stabilization, stronger upper-secondary participation, and expansion of productive employment opportunities.

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Journal Info

Abbrev

ijset

Publisher

Subject

Agriculture, Biological Sciences & Forestry Humanities Computer Science & IT Economics, Econometrics & Finance Education

Description

International Journal of Social Science, Educational, Economics, Agriculture Research, and Technology (IJSET) is an international journal that publishes popular articles in the fields of Social Science, Education, Economics, Agricultural Research, and Technology. IJSET is published every month in ...