1. Home
  2. Vol 9, No 2 (2020)
  3. Murti

The Linkage of Employment to Poverty in Central Java at 2010-2017

Sartika Andari Murti, Robert Kurniawan

Abstract


In 2017, Central Java was the second largest contributor to the GDP in Java but still has poverty and employment problems. In this research, wellbeing can approach with per capita expenditure. Empirically per capita expenditure has spatial relevance. This study aims to determine the relationship between employment indicators and the spending spatially in Central Java. The variables used are expenditure, labor force participation, labor productivity, minimum wage of regency/city, and the average length of the school. The analytical method used to determine the relationship is spatial panel regression with the Spatial Error Model fixed effect. The results obtained are labor force participation, labor productivity, minimum wage of regency/city, and the average length of the school, and spatial error dependencies have a significant positive effect on expenditure. Suggestions proposed are to increase employment through investments, especially in education, and to increase cooperation between regencies/cities in poverty alleviation efforts.

JEL Classification: E2, E22, I3, I32, I38, J2, J21, J23.

How to Cite:

Murti, S. A., & Kurniawan, R. (2020). The Linkage of Employment to Poverty in Central Java. Signifikan: Jurnal Ilmu Ekonomi, 9(2), 195-206. https:// doi.org/10.15408/sjie.v9i2.14466.

Keywords


poverty; employment; spatial panel

References


Addison, T., & Demery, L. (1993). Labour Markets, Poverty and Adjustment. Journal of International Development, 5(2), 135-143. https://doi.org/10.1002/jid.3380050205.

Addison, J. T., & Blackburn, M. (1999). Minimum Wages and Poverty. ILR Review, 52(3), 393-409. https://doi.org/10.1177/001979399905200302.

Adelowokan, O. A., Babasanya, A. O., Maku, O. M., & Adesoye, A. B. (2019). Unemployment, Poverty, and Economic Growth in Nigeria. Journal of Economics and Management, 35(1), 5-17. https://doi.org/10.22367/jem.2019.35.01.

Alisjahbana, A. S., & Manning, C. (2006). Labour Market Dimensions of Poverty in Indonesia. Bulleting of Indonesian Economic Studies, 42(2), 235-261. https://doi.org/10.1080/00074910600873674.

Barbieri, P., & Bozzon, R. (2016). Welfare, Labour Market Deregulation and Households’ Poverty Risks: an Analysis of the Risk of Entering Poverty at Childbirth in Different European Welfare Clusters. Journal of European Social Policy, 26(2), 99-123. https://doi.org/10.1177/0958928716633044.

Bhargava, A., Franzini, L., & Narendranathan, W. (1982). Serial Correlation And The Fixed Effects Model. The Review Of Economic Studies, 49(4), 533-549.

Bird, K., & Manning, C. (2008). Minimum Wages and Poverty in a Developing Country: Simulations from Indonesia’s Household Survey. World Development, 36(5), 916-933. https://doi.org/10.1016/j.worlddev.2007.05.012.

Borjas, G. J. (2016). Does Welfare Reduce Poverty. Research in Economics, 70 (1), 143-157. https://doi.org/10.1016/j.rie.2015.11.002.

Breusch, T.S., & Pagan, A.R. (1979). A Simple Test For Heteroscedasticity And Random Coefficient Variation. Econometrica: Journal Of The Econometric Society, 47(5), 1287-1294.

Dalton, P. S., Gonzalez, J. V. H., & Noussair, C. N. (2017). Exposure to Poverty and Productivity. PloS ONE, 12(1), e0170231. https://doi.org/10.1371/journal.pone. 0170231.

Devereux, S. (2005). Can Minimum Wages Contribute to Poverty Reduction in Poor Countries? Journal of International Development, 17(7), 899-912. https://doi.org/10.1002/jid.1183.

Djafar, F., & Kurniasih, E. O. (2015). Unemployment, Poverty, and Indonesian Overseas Workers. Asian Journal for Poverty Studies, 1(1), 30-33. https://doi.org/10.33369/ ajps.v1i1.967.

Elhorst, J. P. (2014). Spatial Econometrics From Cross-Sectional Data To Spatial Panels. Jerman: Springer.

Ensor, T., Bhattarai, R., Manandhar, S., Poudel, A. N., Dhungel, R., Baral, S., Hicks, J. P., Thomson, D., & Elsey, H. (2020). From Rags to Riches: Assessing Poverty and Vulnerability in Urban Nepal. PloS One, 15(2), e0226646. https://doi.org/10.1371/journal.pone.0226646.

Fitriani, A. (2012). Analisis Spasial Data Panel Pada Rata-Rata Pengeluaran Per Kapita Jawa Barat Dengan Matriks Queen Contiguity dan Akses Jalan (Spatial Analysis of Panel Data on Average Expenditures Per Capita in West Java Using the Queen Contiguity Matrix and Road Access). (Unpublished Thesis). IPB University.

Gewirtz, S. (2017). Rethinking Eduction and Poverty. British Journal of Sociology of Education, 38(7), 1081-1088. https://doi.org/10.1080/01425692.2017.1349654.

Hyman.G. & Farrow. A. (2005). Poverty Mapping: Geographic Distribution of Poor. Ecuador: CIAT.

Ivanic, M., & Martin, W. (2018). Sectoral Productivity Growth and Poverty Reduction: National and Global Impacts. World Development, 109, 429-439. https://doi.org/10.1016/j.worlddev.2017.07.004.

MaCurdy, T. (2015). How Effective is the Minimum Wage at Supporting the Poor? Journal of Political Economy, 123(2), 497-545. https://doi.org/10.1086/679626.

Mohammad, U. F., & David, J. (2019). The Relationship Between Poverty and Unemployment in Niger State. Signifikan: Jurnal Ilmu Ekonomi, 8(1), 71-78. https://doi.org/10.15408/sjie.v8i1.6725.

Muklis, D. (2012). Faktor-Faktor Yang Mempengaruhi Pengeluaran Perkapita Perbulan Rumah Tangga Sebagai Indikator Kemiskinan Rumah Tangga Di Kabupaten Maerauke Tahun 2011 (Factors That Influence Monthly Per capita Household Expenditure as Indicator of Household Poverty in Maerauke Regency in 2011). (Unpublished Thesis). Politeknik Statistika STIS.

Murti, S.A. & Kurniawan, R. (2019). Analisis Kecenderungan Sosio-Demografi pada Kemiskinan Multidimensi di Provinsi Bengkulu Tahun 2015. Konferensi Nasional Penelitian Matematika dan Pembelajarannya IV, 26(1), 9.

Nguyen, H. M., & Nguyen, T. A. (2019). Investigating the Determinants of Household Welfare in the Central Highland, Vietnam. Cogent Economics & Finance, 7(1), a1684179. https://doi.org/10.1080/23322039.2019.1684179.

Njong, A. M. (2010). The Effects of Educational Attainment on Poverty Reduction in Cameroon. Journal of Education Administration and Policy Studies, 2(1), 1-8. https://doi.org/10.5897IJEAPS10.058.

Puspitasari, D. (2017). Determinan Kemiskinan di Jawa Tengah Tahun 2012-2016: Regresi Data Panel Spasial (Determinants of Poverty in Central Java 2012-2016: Spatial Panel Data Regression). (Unpublished Thesis). Politeknik Statistika STIS.

Rohima, S. (2013). Vicious Circle Analysis of Poverty and Entrepreneurship. Journal Of Bussines And Management (IOSR-JBM), 7(1), 6-8.

Stiglitz, J. E. (2011). Rethinking Development Economics. The Wolrd Bank Observer, 26(2), 230-236. https://doi.org/10.1093/wbro/lkr011.

Tambunan, T. (2006). Perekonomian Indonesia Sejak Orde Lama Hingga Pasca Krisis (Indonesian Economy Since the Old Order Until Post-Crisis). Jakarta: Pustaka Quantum.

Todaro, M. P. & Smith, S. C. (2006). Pembangunan Ekonomi (Economic Developnent). Jakarta: Erlangga.

Vedder, R., & Gallaway, L. (2002). The Minimum Wage and Poverty Among Full-Time Workers. Journal of Labor Research, 23, 41-49. https://doi.org/10.1007/s12122-002-1016-4.

Wahyudi, D. (2013). Analisis Kemiskinan Di Jawa Tengah (The Poverty Analysis in Central Java). Diponegoro Journal Of Economics, 2(1), 1-5.

Widyastuti, A. (2012). Analisis Hubungan Antara Produktivitas Pekerja dan Tingkat Pendidikan Pekerja Terhadap Kesejahteraan Keluarga di Jawa Tengah 2009 (Analysis of the Relationship Between Worker Productivity and Worker Education Levels Against Family Welfare in Central Java 2009). Economics Development Analysis Journal, 3(2), 1-11.

Yuniarto, B & Kurniawan, R. (2017). Understanding Structure Of Poverty Dimensions In East Java: Bicluster Approach. Signifikan: Jurnal Ilmu Ekonomi, 6(2), 289-300. https://doi.org/10.15408/sjie.v6i2.4769.


Full Text: PDF

DOI: 10.15408/sjie.v9i2.14466

Refbacks

  • There are currently no refbacks.


Bookmark and Share