International Journal of Economics and Management Sciences
Vol. 3 No. 3 (2026): Agustus: International Journal of Economics and Management Sciences

The Effect of Economic Growth, Minimum Wage, and Education on Poverty in the Horseshoe Region

Sabrina Ida (Universitas Pembangunan Nasional Veteran Jawa Timur)
Anisa Fitria Utami (Universitas Pembangunan Nasional Veteran Jawa Timur)



Article Info

Publish Date
31 Aug 2026

Abstract

This study aims to analyze the effect of economic growth, district/city minimum wage (UMK), and education on poverty in the Tapal Kuda region of East Java. The study employs a quantitative approach using balanced panel data from seven regencies during 2018–2024 obtained from Statistics Indonesia (BPS). Data were analyzed using panel data regression with the Fixed Effect Model (FEM) selected through the Chow, Hausman, and Lagrange Multiplier tests. The results indicate that economic growth and district/city minimum wage have a negative and significant effect on poverty, while the average years of schooling has no significant effect. These findings suggest that poverty reduction in the Tapal Kuda region is more strongly influenced by economic factors that directly increase community income than by improvements in education, whose benefits tend to emerge in the longer term. The study provides empirical evidence to support regional poverty reduction policies based on local development characteristics.

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Journal Info

Abbrev

IJEMS

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences

Description

Topics in this journal relate to any aspect of management, but are not limited to the following topics: Human Resource Management, Financial Management, Marketing Management, Public Sector Management, Operational Management, Supply Chain Management, Corporate Governance, Business Ethics, Management ...