Decoding Poverty in Yogyakarta: The Roles of Inequality, Unemployment, and Minimum Wage
DOI:
https://doi.org/10.55927/fjmr.v4i9.454Keywords:
Poverty, Income Inequality, Open Unemployment Rate, Minimum WageAbstract
This study aims to analyze the influence of income inequality, open unemployment rate, and minimum wage on poverty in the Special Region of Yogyakarta during the period 2015–2024. Using a quantitative approach with panel data regression analysis, the study utilizes secondary data from the Central Bureau of Statistics (BPS) and is analyzed using Eviews 12 software. The estimation models employed include the Common Effect Model, Fixed Effect Model, and Random Effect Model, with model selection based on the Chow test, Hausman test, and Lagrange Multiplier test. The results indicate that income inequality has a positive and significant effect on poverty, while the effects of the open unemployment rate and minimum wage vary depending on the estimation model used. These findings suggest that policies focusing on improving economic welfare, job creation, and income distribution can play a crucial role in reducing poverty in the Special Region of Yogyakarta.
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