Authors: Yusriana Yusriana; Dini Turipanam Alamanda; Sutyastie Soemitro Remi
Addresses: Faculty of Economics, State University of Medan, Medan 20221, Indonesia ' Faculty of Economics, Garut University, Garut 44151, Indonesia ' Faculty of Economics, Padjadjaran University, Jatinangor 45363, Indonesia
Abstract: This study aims to assess the effect of education on poverty reduction in Indonesia. Indonesia is chosen as the site of the study for two reasons, namely the relatively high poverty level and massive industrial development, as Indonesia is actively engaged in the international markets. Quantitative methods with descriptive explanations were used to prove the effect of education on poverty in Indonesia. Secondary panel data were taken from Statistics Indonesia from the period 2008 to 2018. Data were then analysed using the ordinary least square (OLS) method. The results show that education with a minimum high school level can reduce poverty. The study revealed that education increased the capability of human resources. Therefore, human resource improvement increased productivity and income, and finally, it reduced poverty.
Keywords: education; human resource; human capital; productivity; international market; welfare; poverty.
International Journal of Trade and Global Markets, 2021 Vol.14 No.2, pp.125 - 133
Received: 31 May 2019
Accepted: 27 Nov 2019
Published online: 20 Mar 2021 *