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October 16, 2025Formosa Journal of Multidisciplinary Research0 citations

Decoding Poverty in Yogyakarta: The Roles of Inequality, Unemployment, and Minimum Wage

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MJMoch Raffi Eka Putra JoyaMWMohammad Wahed

Key Points

  • Income inequality positively influences poverty, indicating a clear relationship between the two factors.
  • The open unemployment rate's effect on poverty varies according to the estimation model used, highlighting its complexity.
  • Minimum wage shows differing impacts on poverty levels, emphasizing the need for tailored economic policies.
  • Policies to enhance economic welfare and income distribution may significantly reduce poverty in Yogyakarta.

Abstract

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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Cite This Study

Joya et al. (2025) studied this question.

synapsesocial.com/papers/68f04935e559138a1a06e4f4https://doi.org/10.55927/fjmr.v4i9.454
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