Abstract

The equitable poverty reduction in North Sumatera became one of the unresolved issues until now. The decreasing of poverty percentage in the last five years in North Sumatera can not represent the level of public welfare. In fact , in 2013, there were 22 out of 33 districts in North Sumatera which have the poverty percentage more than ten percent and known as hardcore poverty. The highest poverty percentage was found in North Nias and Gunung Sitoli by 30.94 %, while the lowest was found in Deli Serdang by 4.71 %. This research stated the problem “How is the influence of the economic growth, level of education, and the minimum regional wages toward the level of poverty in North Sumatera Province? The objective is to analyze the influence of economic growth, the level of education and the minimum wages toward the poor population in North Sumatera Province. This research used 165 samples that spread in 33 districts in North Sumatera from 2009 until 2013 with panel data and using Fixed Effect Model Method. The result of the Ordinary Least Square Method (LOS) through the multiple linear regretion estimated model showed that the economic growth and the minimum regional wages had negative influence, while the level of education had positive influence toward poverty in North Sumatera. The coefficient of determination (R2) is 0.948157 which means the variable of economic growth, minimum regional wages and level of education can define the poverty in North Sumatera by 94.82 %, and 5.18 % defined by other economic variables outside the model.

Highlights

  • INTRODUCTION orthSumatera as a province with the fourth largest population in Indonesia with 33 city regencies contained in it is certainly one of the great potentials in Indonesia

  • Minimum Wagesused in this study is the minimum wage that applies in 33 regencies / cities of North Sumatera Province in 2009-2013 which is measured in rupiah units

  • The poverty rate regression coefficient based on the above data processing results is 6.655604, which means that the normal poverty rate in North Sumatera is 6.66 percent of the population

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Summary

RESEARCH METHOD

This study uses panel data analysis (pooled data). Where the goal is to determine the effect of the level of economic growth, minimum wages, and education on poverty levels in the province of North Sumatera. 2. Regional Economic Growth (Y), expressed as changes in GRDP at constant prices in 33 Regencies / Cities of North Sumatera Province (in percent) in 2009-2013. Minimum Wagesused in this study is the minimum wage that applies in 33 regencies / cities of North Sumatera Province in 2009-2013 which is measured in rupiah units. In the preparation of this study the data used are secondary data taken from the Central Statistics Agency of North Sumatera Province and the Office of Manpower and Transmigration of North Sumatera Province. The data collection technique in this research is through documentary studies, namely by collecting data through written documents, journals, certain books, opinions, theories and using secondary data sourced from the North Sumatera Central Statistics Agency (BPS) and Department of Manpower and Transmigration of North Sumatera Province for the period 2009 - 2013. The independent variable that affects the dependent variable is stated in the following functions: the function is transformed into a multiple linear equation model (multiple regression)

AND DISCUSSION
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Conclusion
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