IJSTR >> Volume 10 - Issue 1, January 2021 Edition

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AUTHOR(S)

Artha Sampuara Sitorus, Candra Fajri Ananda

KEYWORDS

Education, Household Poverty status, Multinomial Logit, Socio-economic Characteristic.

ABSTRACT

This study analyzes the effect of education level and socio-economic characteristics on household poverty status in the Riau Islands Province. By utilizing the Multinomial logit model, this study analyses the factor that influences household poverty incidence. The poverty levels are divided into three categories: poor households, near-poor households, and non-poor households, based on the definition of the Indonesian Central Bureau of Statistics poverty lines using the expenditure approach. Using the Indonesia National Economic and Social Survey (Susenas) 2018 data, the findings show that the probability of being poor in the Riau Islands Province is influenced mainly by the household head's education, household size, and employment status. Aside from providing training to household heads who do not have primary education through a vocational training center, the government should also increase the number of vocational high schools and adjust the curriculum to the industrial/labor market needs.

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