ANALISIS DETERMINAN TINGKAT KEMISKINAN DI PROVINSI SUMATRA UTARA TAHUN 2015-2020

Abstract

The condition of regional poverty reflects the level of prosperity of the population living in the region. This study aims to determine the direction and magnitude of the influence of population density, open unemployment rate, minimum wage, government spending, the proportion of GRDP in the industrial sector on poverty in North Sumatra during the 2015-2020 time period. This type of research is a quantitative research using secondary data. The data analysis technique used is panel data regression analysis with the Fixed Effect Model (FEM) approach. The results of the study show that the District/City Minimum Wage and the Proportion of GRDP in the Industrial Sector have an influence on Poverty. Meanwhile, Population Density (KPPD), Open Unemployment Rate (UEMP), and Government Expenditure (GOV) have no influence on Poverty in North Sumatra. Meanwhile the highest number of poverty was identified in Medan City. The Minimum Wage responds to the decline in the number of poor people. An increase in the minimum wage means that the income of workers also increases, which in turn will have an impact on increasing people's purchasing power or consumption. According to the efficiency-wage theory, it shows that worker productivity increases along with the wage level. The proportion of GRDP in the industrial sector has an influence on the Poverty Level. According to the theory of the trickle down effect which explains that economic growth calculated on the basis of GRDP can have a positive impact on reducing poverty, if ongoing economic growth encourages the poor.