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Investigating the Public Spending and Economical Growth on the Poverty Reduction in Indonesia
Said Muhammad,T. Zulham,Diana Sapha,Fitriyani,Jumadil Saputra 대한산업공학회 2019 Industrial Engineeering & Management Systems Vol.18 No.3
Poverty and income inequality are being one of the most challenging issues in many developing countries, including Indonesia. Considering the higher level of the poverty rate in Indonesia, the study about poverty reduction is crucial and currently under discussion in previous studies. Thus, this study is written to examine what is education and health budgets could be reducing the poverty rate in Indonesia. The study utilizes annual data gathered from the Central Bureau of Statistics over the 2007–2017 period and analyzed using panel data by assisting the Eviews-10. The empirical result finds that the budget allocated for education and health significantly reduce the poverty rate in Indonesia. Therefore, it is suggested that to further reduce the poverty level, the government should allocate more budget of education and health for the poor and there is a need to monitor the public service performance with the aim the allocation of expenditure can be more efficient and effective. Besides, it is necessary to increase the number of pro-poor programs such as free public health and education insurance to fulfill the basic needs of the poor.
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Why Does a Child Labor Exist in Aceh Province, Indonesia?
T. Zulham,Said Muhammad,Diana Sapha,Fitriyani,Jumadil Saputra 대한산업공학회 2019 Industrial Engineeering & Management Systems Vol.18 No.3
Child labor is a pervasive issue around the world, especially in developing countries. It is a wide phenomenon issue in which many countries have a similar problem related to child labor. The purpose of this study is to examine the factors determining child labor in Aceh Province. The data used is the primary data of the National Social Economic Survey (SUSENAS) 2016 conducted by the Central Bureau of Statistics. The dependent variable is children aged 10-17 years, while the independent variables are the educational level, the role of child as the head of the household, gender, residence area, single parent status, and age. The logistic regression model is used to describe the relationship between the independent variable (child labor and not child labor) with a number of explanatory variables. The result indicates that there is a relationship between child labor and all variables used in this model. Nonetheless, status as head of household and single parent woman are irrelevant as the significance value (α) is less than 5% by using the Wald Test Statistic. Thus, it is recommended to do some improvements in young people’s education system. Moreover, government policies that protect the human rights of child labors need to be done as a form of government intervention.
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