Reducing the Poverty Level in Indonesia: The Impact of Education for Women, the Absorption of Women Labor, Economic Growth, and Government Spending

Abstract

Ending poverty in all its forms is a primary goal for countries participating in achieving the Sustainable Development Goals (SDGs) and is a public policy agenda in each of their respective nations, including Indonesia. The relatively high poverty rate in Indonesia poses a challenge to realising this goal, given that poverty is widespread across the country and disproportionately affects women. This necessitates empirical studies to formulate alternative evidence-based policies, particularly those that empower women. Variables such as women's education, labour absorption, economic growth, and government spending on education and health can reduce poverty in Indonesia's regions. This study aims to analyse the impact of these variables on poverty reduction through a fixed-effect panel data regression analysis of 34 provinces in Indonesia from 2013 to 2022. The results indicate that women's education, labour absorption of women, and government spending on education and health are statistically significant in reducing poverty. This underscores the need for government attention to budget allocation for education and health to enhance human capital among the poor, facilitating their integration into the labour market. Economic growth should be directed towards inclusive growth so that all poor populations can participate in driving the economy, ultimately enabling them to rise above the poverty line and move towards gender equality.

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