SENSITIVITY OF POVERTY DEPTH DETERMINANTS: ASSET OWNERSHIP AS MODERATION

Abstract

This study aims to precisely determine the effect of poor households' total assets on the poverty depth level in the Aceh Province of Indonesia. The contribution of this research is that it can become a reference for poverty solutions at every level of poverty depth in Poor Households in various deciles. The moderation of the total assets of poor households can indicate the level of resilience of poor households. The moderate regression analysis using panel data for 2011-2021. The interaction between poor households on the variables of job, years of schooling, access to finance/credit loans, and total assets of poor households are different for each level of depth of poverty (in deciles from 1 to 4). Meanwhile, the total assets of poor households and jobs significantly reduce the number of poor households at each level. Education negatively affects poor households at depth-level 4th. Employment moderated by the total assets of poor households strengthens poverty reduction at all depth levels. Changes in asset ownership impact the welfare of the community. The findings of this study prove that changes in the assets owned by poor households can moderate the severity of poor households. Employment moderated by changes in assets is very dominant in influencing the depth level of poor households in each decile. Education has not become a priority for poor households at the poverty depth level, which is still high from deciles 1 to 3. Therefore, the government should focus more on assistance programs to improve skills in poor households to support livelihood resources.