Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?

Efforts to alleviate unemployment and poverty must be done comprehensively, cover various aspects of community life, and be implemented in an integrated manner. The research aims to explain the relationship between variables directly, indirectly, and as a whole, to find out how much influence the mi...

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Main Authors: Dian Wahyuningsih, Ani Yunaningsih, Muhammad Sidik Priadana, Dio Caisar Darma, Purwadi Purwadi
Format: Article
Language:English
Published: EconJournals 2020-03-01
Series:International Journal of Economics and Financial Issues
Online Access:http://mail.econjournals.com/index.php/ijefi/article/view/9214
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author Dian Wahyuningsih
Ani Yunaningsih
Muhammad Sidik Priadana
Dio Caisar Darma
Purwadi Purwadi
author_facet Dian Wahyuningsih
Ani Yunaningsih
Muhammad Sidik Priadana
Dio Caisar Darma
Purwadi Purwadi
author_sort Dian Wahyuningsih
collection DOAJ
description Efforts to alleviate unemployment and poverty must be done comprehensively, cover various aspects of community life, and be implemented in an integrated manner. The research aims to explain the relationship between variables directly, indirectly, and as a whole, to find out how much influence the minimum wages, education, and inflation rates on unemployment and poverty. The analytical approach through panel analysis based on the panel-common effect in 2015-2019 in 5 regions (West, Central, South, East, and North Borneo Island). Empirical findings state that minimum wages have a negative and significant effect on unemployment, while education has a positive and significant effect on unemployment, and inflation rates have a positive and not significant effect on unemployment. Unemployment has a positive and insignificant effect on poverty. Minimum wages have a negative and insignificant effect on poverty through unemployment, while education and inflation rates are both positive and not significant effects on poverty through unemployment. An increase in the informal sector is needed to reduce unemployment and poverty because the informal sector is the main solution to address this problem. Keywords: Minimum Wages, Education, Inflation Rates, Unemployment, Poverty JEL Classifications: E24, E31, I3 DOI: https://doi.org/10.32479/ijefi.9214
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spelling doaj.art-f3abc10deaf641df9df1d7f4e8b36a102023-02-15T16:09:49ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382020-03-01102Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?Dian WahyuningsihAni YunaningsihMuhammad Sidik PriadanaDio Caisar Darma0Purwadi PurwadiSamarinda High College of Economics, IndonesiaEfforts to alleviate unemployment and poverty must be done comprehensively, cover various aspects of community life, and be implemented in an integrated manner. The research aims to explain the relationship between variables directly, indirectly, and as a whole, to find out how much influence the minimum wages, education, and inflation rates on unemployment and poverty. The analytical approach through panel analysis based on the panel-common effect in 2015-2019 in 5 regions (West, Central, South, East, and North Borneo Island). Empirical findings state that minimum wages have a negative and significant effect on unemployment, while education has a positive and significant effect on unemployment, and inflation rates have a positive and not significant effect on unemployment. Unemployment has a positive and insignificant effect on poverty. Minimum wages have a negative and insignificant effect on poverty through unemployment, while education and inflation rates are both positive and not significant effects on poverty through unemployment. An increase in the informal sector is needed to reduce unemployment and poverty because the informal sector is the main solution to address this problem. Keywords: Minimum Wages, Education, Inflation Rates, Unemployment, Poverty JEL Classifications: E24, E31, I3 DOI: https://doi.org/10.32479/ijefi.9214 http://mail.econjournals.com/index.php/ijefi/article/view/9214
spellingShingle Dian Wahyuningsih
Ani Yunaningsih
Muhammad Sidik Priadana
Dio Caisar Darma
Purwadi Purwadi
Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?
International Journal of Economics and Financial Issues
title Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?
title_full Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?
title_fullStr Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?
title_full_unstemmed Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?
title_short Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?
title_sort why are unemployment and poverty still happening in borneo island indonesia
url http://mail.econjournals.com/index.php/ijefi/article/view/9214
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