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Examining the roles of labor factors, investment, and industrialization in poverty alleviation: Empirical evidence from Sumatra, Indonesia

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  • Roosemarina Anggraini Rambe
  • Purmini Purmini
  • Lizar Alfansi
  • Armelly Armelly
  • Yusnida Yusnida

Abstract

This article examines the effect of unemployment, laborer education, type of employment, gender, off‐farm worker vulnerability, investment, and industrialization levels on poverty in districts/cities in Sumatra, Indonesia. The study was conducted in 154 districts/cities in Sumatra from 2013 to 2018. Using a panel data regression model, this study found that laborer education, type of employment, gender, and industrialization level positively affected the poverty rate. By comparison, relatively higher levels of worker vulnerability and investment negatively influenced poverty. Unemployment rates did not influence poverty significantly. The policy recommendation for poverty alleviation, therefore, is the creation of jobs in sectors outside of agriculture, especially in the processing industry and service sectors, coupled with improving the quality of workers' performance through skill training. The study contributes to the literature on poverty reduction by providing insight into how labor factors, investment, and industrialization influence poverty. 本文分析了失业、劳动者教育、就业类型、性别、农场外(off‐farm)工人的脆弱性、投资、以及工业化水平对印度尼西亚苏门答腊岛地区/城市贫困产生的影响。本研究于2013‐2018年在苏门答腊岛154个区/市进行。通过使用一项面板数据回归模型,本研究发现,劳工教育、就业类型、性别和工业化水平对贫困率有正面影响。相比之下,相对较高水平的工人脆弱性和投资对贫困产生了负面影响。失业率对贫困没有显著影响。因此,对扶贫的政策建议则是在农业以外的部门(特别是加工业和服务业)创造就业机会,同时通过技能培训提高工人的绩效质量。本研究通过对劳动力因素、投资和工业化如何影响贫困一事提供见解,进而为减贫文献作贡献。 Este artículo examina el efecto del desempleo, la educación de los trabajadores, el tipo de empleo, el género, la vulnerabilidad de los trabajadores no agrícolas, la inversión y los niveles de industrialización sobre la pobreza en distritos/ciudades de Sumatra, Indonesia. El estudio se realizó en 154 distritos/ciudades de Sumatra entre 2013 y 2018. Utilizando un modelo de regresión de datos de panel, este estudio encontró que la educación de los trabajadores, el tipo de empleo, el género y el nivel de industrialización afectaron positivamente la tasa de pobreza. En comparación, niveles relativamente más altos de vulnerabilidad de los trabajadores y de inversión influyeron negativamente en la pobreza. Las tasas de desempleo no influyeron significativamente en la pobreza. Por lo tanto, la recomendación de política para el alivio de la pobreza es la creación de empleos en sectores fuera de la agricultura, especialmente en la industria procesadora y los sectores de servicios, junto con la mejora de la calidad del desempeño de los trabajadores a través de la capacitación profesional. El estudio contribuye a la literatura sobre la reducción de la pobreza al proporcionar información sobre cómo los factores laborales, la inversión y la industrialización influyen en la pobreza.

Suggested Citation

  • Roosemarina Anggraini Rambe & Purmini Purmini & Lizar Alfansi & Armelly Armelly & Yusnida Yusnida, 2023. "Examining the roles of labor factors, investment, and industrialization in poverty alleviation: Empirical evidence from Sumatra, Indonesia," Poverty & Public Policy, John Wiley & Sons, vol. 15(4), pages 431-446, December.
  • Handle: RePEc:wly:povpop:v:15:y:2023:i:4:p:431-446
    DOI: 10.1002/pop4.385
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