Unemployment, Education, Poverty, and Inclusive Growth: Evidence from Provinces in Indonesia

The aim of this study was to examine the effects of unemployment, education and poverty on inclusive growth. The aim of this study is inclusive growth in all provinces of Indonesia. The type of data used in this study is panel data, which is a composite of time series covering the investigation term from 2015 to 2018 with a cross section in the form of monthly per capita expenditure per household, the number of unemployed, the pure school enrollment rate and the number of impoverished people at provincial level in Indonesia. This type of research uses quantitative methods and the data used in this study are secondary data received from the Central Statistics Agency (BPS) through the website The sample selection is based on a dedicated sample method: The data required for the variables of inclusive growth, unemployment, education, and poverty are recorded completely in BPS during the study period from 2015 to 2018.

The results of the analysis show that unemployment is determined by the number of unemployed persons (aged 15 years and over) who are not in employment, and is demonstrably unemployed. It has been shown that a significantly negative effect on inclusive growth, education, which is afflicted by the total number of attendance of community schools at all levels of primary, secondary and upper school, has a significant positive effect on integrative growth and poverty, which is afflicted by the number of impoverished people in the province, is one Influence has significant negative to inclusive growth. This suggests that development related to education and the reduction of unemployment and poverty must be increased to achieve inclusive growth.

The policy implications of the results of this study suggest that inclusive growth is still not evenly distributed across all provinces of Indonesia. Therefore, the government is expected to compensate by reviewing the data of the poor in each region to use as a reference for educational support for students who are less able and who are implementing development programs that address the problem of unemployment and development tackles poverty directly, such as allocating measurable and targeted regional spending and expanding the number of jobs and basic training for independent companies. The next researcher is expected to increase the number of years of observation and use a broader research focus in several provinces that are still far from inclusive growth.


  • Andrian, T. (2020). Unemployment, Education, Poverty, and Inclusive Growth: Evidence from Provinces in Indonesia. International Journal of Psychosocial Rehabilitation. 24(7), 1-8.
  • Google Image. (2021).
Tommy Andrian, S.E., M.Ak, Cert.DA.