June 6, 2025

Determination of The Women LFPR, Economic Growth, Gini Ratio, And HDI On Poverty Reduction (East Java Province Cities)

Key Points

The study finds that economic growth significantly contributes to reducing poverty, while the Gini ratio increases it.
Panel data analysis using the fixed effect model highlights the complexity of women's LFPR in economic contexts.
The HDI shows a significant adverse effect on poverty rates indicating the need for targeted interventions.
Income inequality, as represented by the Gini ratio, exacerbates poverty levels, calling for policy action.

Abstract

This study aims to analyze the determinants of poverty reduction in nine cities in East Java Province during the period 2017–2023, using the Fixed Effect Model (FEM) panel data method. The independent variables analyzed include the Female Labour Force Participation Rate, economic growth, Gini ratio, and HDI. The research results show that the Female Labour Force Participation Rate (WOMEN’S LFPR) has an insignificant adverse effect on economic growth, and the HDI has a significant adverse effect on the poverty rate, while the Gini ratio has a significant positive effect. The women’s LFPR tends to have an insignificant impact due to the burden of women's dual roles, while economic growth and the increase in HDI significantly contribute to reducing poverty. A high Gini ratio reflects income inequality that exacerbates the poverty rate.

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