MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 17 of 25

THE EFFECT OF EDUCATION, HEALTH, UNEMPLOYMENT AND INFRASTRUCTURE ON POVERTY IN

Deffrinica1), Dokman Marulitua Situmorang 2)Benediktha Kikky Vuspitasari3) Hayet4) 1Management College of Shanti Bhuana [email protected] 2Management College of Shanti Bhuana [email protected] 3Management College of Shanti Bhuana [email protected] 4Tanjungpura University [email protected]

Abstract Education (X1) shows the results of the analysis of poverty (Y) in Bengkayang Regency. Not significant when viewed from the results of the t test partially can be obtained to count to the value of the Education Sector, -1.449> 1.796 so that education has a positive and not significant effect on poverty, which is supported by a significant level of 0.385 <0.050. This shows that the Education Sector variable has no significant effect on Poverty (Y). Health (X2) has a negative and significant effect on Poverty, which is supported by the Probability Value (sig) of 0.437 <0.050. This means that in terms of health, the government in this case has made every possible effort for budget expenditures , but in fact in the field there are still many underprivileged people who have not been able to enjoy maximum hospital services. The results of the analysis of the direct effect of Unemployment (X3) on Poverty in Bengkayang Regency showed insignificant influence. The results of the analysis show that this path has a significant effect because the value of t count is 1,217, while the table is 1,796 (t count 1,217> t table 1,796), thus in this direct relationship pattern, unemployment has a positive effect not significant to poverty, which is supported by Probability Value (sig) 0.371> 0.050. The results of the analysis of direct influence of Infrastructure (X4) on poverty levels in Bengkayang Regency show that the path coefficient between Infrastructure and poverty is 0.804> 0.050, which means that the pathway has a negative and insignificant effect. The method used to analyze this research is linear regression with the least squares method usually known as OLS (Ordinary Least Square), which is a method used to determine the effect of an independent variable on the dependent variable.

Keywords: Education, Health, Unemployment, Infrastructure, Poverty MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 18 of 25

INTRODUCTION The issue of poverty has been a concern and priority for the development of Table 1.1 Bengkayang Regency since becoming an Strategic Goals on the Evaluation Result autonomous region in 1999. This is determined No Strategic Achieve Evaluation by the progress of development and the rate of Goals ment result the economic growth which acts as a starting 1 The increasing 67.20% succeeded point in improving the quality of the life and the of the number, development of resources and potential in quality and Bengkayang Regency to overcome the existing system of poverty. One of the root causes of poverty in network Bengkayang Regency is generally related to the coverage of basic inequality of access to education, health, and infrastructure other basic services. In addition, poverty is also (education, related to the lack of access to basic health, housing, infrastructure and access to productive assets, transportation, and the low level of private investment and clean water, entrepreneurship, so that the poverty rate in communication Bengkayang Regency increases. , irrigation, and Basically, in mapping poverty, we are electricity) faced with complex problems, so poverty alleviation needs to be done comprehensively, 2 The increasing 86.37% Extremely of the systematically, and involving various existing succeeded transportation stakeholders. Poverty also needs to involve function for people who are categorized as poor. remote areas Presidential Regulation number 15 of 2010 3 Internal 115.63% Extremely concerning the acceleration of poverty accessibility succeeded alleviation which delegates the formation, basic increased tasks and functions of TKPK in the regions, between explains that the membership of the National regions to Team accelerates poverty reduction consisting create synergy of government, community, business, and other in developing stakeholders in poverty reduction. Thus, in regional potential and overcoming the problem of poverty, the poor even are strayed to be able to escape the poverty trap distribution of that exists and can develop a more decent development livelihood. levels between Referring to this understanding, in regions. 2005 2012 Bengkayang Regency experienced an average economic growth of 5.5% each year. 4 Industrial 92.50% Extremely This data shows that Bengkayang Regency has growth based succeeded considerable prospects and potential that can be on agriculture, used to overcome the existing poverty plantation, problems. Bengkayang Regency has 38 fisheries, mining and strategic targets as the basis for implementing forestry in a the prescribed vision and mission. Based on the sustainable existing targets, there are 10 strategic targets manner, and the that are considered in accordance with poverty tourism reduction. The 10 strategic targets are as industry based follows: on MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 19 of 25

strengthening and developing Various programs have been economic, implemented which can be said to be successful social, cultural and have an impact on poverty reduction in and local Bengkayang Regency. It still has to try harder communities, and preserving to reach targets that have not been successful. environmental More in-depth analysis of the problem of functions. poverty in Bengkayang Regency is very necessary to find the causal factors regarding 5 Good control of Has not the problem of poverty in Bengkayang commodity succeeded Regency. Therefore, the authors are interested selling prices in in analyzing the factors of education, health, order to unemployment and infrastructure towards increase poverty that occurs in Bengkayang Regency. people's income

RESEARCH PURPOSES 6 Increasing 90.01% Extremely This study aims to determine the productivity of succeeded agricultural and effect of education, health, unemployment and fishery infrastructure on poverty in Bengkayang products by Regency. prioritizing leading sectors. THEORITICAL REVIEW Suparlan (2000) defines that poverty 7 Fulfillment of 90% Extremely is a state of shortage of property and valuables food for the succeeded suffered by a person or group of people living community in in an environment of extreme poverty or lack of accordance capital, both in terms of money, knowledge, with good social power, politics, law, and access to nutritional standards. facilities public services, business opportunities, and work. Furthermore, poverty 8 Sustainable 303.55% Extremely means a condition where people or groups of food succeeded people do not have the ability, freedom, assets availability. and accessibility for their needs in the future, and are very vulnerable to the risks and 9 The realization 87.66% Succeeded pressures caused by diseases and sudden of a society that increases. for prices of food and school fees is highly (UNCHS, 1996; Pandji-Indra, 2001). educated, has World Bank (2002) in Gamal Abdul character, and (2016), categorizes the characteristics of the is insightful in poor according to communities, regions, the future. households, and individuals. In community 10 The increasing 86.73% Extremely factors, infrastructure is the main determinant of the living succeeded of poverty. The condition of infrastructure is standards very closely related to the level of community aimed at welfare. Good infrastructure will make it easier improving for the community to carry out economic and various social activities, in addition it makes it easier development for investors to invest in the area concerned. indicators. Indicators of important infrastructure development are irrigation canals, access to Source : BAPPEDA of Bengkayang electricity, and main road transport conditions. Regency Another indicator of the characteristics of MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 20 of 25 community factors is equal access to a business each individual in accessing capital. These or work such as the existence of financial and three causes of poverty lead to the theory of the industrial institutions. poverty vicious circle (Vicious circle of The United Nation Development poverty). The low productivity has been caused Program (UNDP) reviews poverty from two by the existence of backwardness, market sides, namely in terms of human income and imperfections, and lack of capital. Low quality. Viewed from the side of income, productivity will result in the low income they extreme poverty (extreme poverty) or absolute receive. Low income will have implications for poverty is a lack of income for the needs of low savings and investment. Low investment meeting basic needs or the minimum needs of results in underdevelopment. Therefore, every calories needed. In terms of human quality, effort to reduce poverty should be directed at overall poverty, or often referred to as relative cutting this poverty circle and trap (Kuncoro, poverty, is a lack of income to meet non-food 2006). needs, such as clothing, energy, and shelter Effect of Education on Poverty Levels (UNDP, 2000). Education plays a key role in shaping Another type of poverty the ability of a developing country to absorb classification is persistent poverty, which is a modern technology and to develop capacity to situation where people or families consistently create sustainable growth and development remain poor for a relatively long period of time. (Todaro, 2006). Mankiew (2000) mentions, In America, what is meant by persistent poor someone who is highly educated can produce groups are those who have received welfare new ideas about how the best choice for benefits for more than 8 years (Berrick, 1995; producing goods and services. If this idea is Pandji-Indra, 2001). Whereas transient poverty accepted by the wider population, then is a situation where the life of a person or family everyone can use it so that the idea can be said can temporarily fall below the poverty line if to be an external benefit of education. In this there are layoffs, fall ill and increase the cost of case, the rate of return of education received by education (Pandji-Indra, 2001). This transient the population is greater than the rate of return poverty condition can be found when a country received by the individual. is hit by an economic crisis or natural disaster. Weak economic conditions as a Another review of poverty is poverty line and result of low income will keep someone from poverty measurement, which is a quantitative living a prosperous life. Per capita income is indicator for determining poor individuals or often used as a measure of prosperity and the groups. level of development of a country. The greater The definition of the meaning of the income per capita, it will be more poverty is very diverse, diversity in the prosperous the country (Kuncoro, 2015). definition of poverty because these problems Todaro & Smith (2011) said that the high cost have propagated at the multidimensional level, of quality education is a barrier for low-income meaning poverty is related to each other with families to finance their children's education. various dimensions of human needs. The Portrait of Indonesian Education (2016 Central inability to meet minimum living standards that Bureau of Statistics) says that a person's are in accordance with the level of life education level is still influenced by economic worthiness can be said as poverty (Todaro, status. If a person's economic status is higher, 2006). the level of education will be higher. Another opinion stated by Sharp, et In association with the theory of al in Mudrajat Kuncoro (2006) identifies causes vicious cycle of poverty, Nurse version of poverty that are viewed from the economic illustrates that backwardness and side. a) Micro-based poverty arises because of underdevelopment is a matter that the chain the inequality of resource ownership by each must be cut off to overcome the problem of individual which causes inequality in income poverty that occurs. Underdevelopment and distribution; b) Poverty arises due to differences underdevelopment can be overcome by the in the quality of human resources with each existence of education organized by the state other c) Poverty arises due to differences in for its citizens to obtain knowledge that can MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 21 of 25 reduce the level of backwardness and reduces the level of prosperity that someone has underdevelopment of an area. Education is also achieved. The decreasing welfare of the people Human Capital, the higher the education due to unemployment will certainly increase completed by a person, the more productive the their chances of being trapped in poverty person is . This will increase income for both because they do not have income. If individual income and national income. The unemployment in a country is very bad, increasing individual income will increase their political and social chaos always applies and consumption capacity, so that they can lift their has a negative effect on the welfare of society lives from poverty. and the prospects for long-term economic development. Effects of Health on Poverty Levels Meanwhile, according to Tambunan Access to health services is a (2001) in Rosyadi (2017), unemployment can responsibility that must be given by the affect poverty levels in various ways, including: government to its people. Health is a minimum a) if the household has a liquidity limit which standard of living that must be owned by every means that current consumption is strongly community. Public health that tends to be good influenced by current income, then disaster of will have an impact on productivity and work unemployment will directly affect the income ethic which also increases; as a result the poverty rate with the consumption poverty rate. income generated increases along with b) If households do not face liquidity improving health in the community. Both constraints which mean that current individual and aggregate income will increase. consumption is not too influenced by current Increased income will raise the degree of income, then an increase in unemployment will someone to get out of poverty. lead to an increase in poverty in the long run, Lincolin (1999) explained that but not too much in the short term. interventions to improve health from the As the theory of poverty vicious government are also an important policy tool to circle nurse version that describes the low reduce poverty. Whereas Nurse in the theory of productivity as one of the causes of poverty. the vicious cycle of poverty, also suggests low Deprivation can be interpreted as a level of productivity as a factor that causes poverty. productivity of someone who is low or can also Low productivity can be caused by low levels not do productivity at all. This is because of health. Low health will cause the work ethic unemployed people do not have a job to to decline and a person's productivity will be generate wages or salaries. Even though most low. Low productivity will have an impact on households depend on the salary / wages they declining income and can bring someone to be earn to fulfill their daily needs. Unemployment vulnerable to poverty. is more common in low income groups so they have to live below the poverty line. This factor The Effect of Unemployment on Poverty is expected to cause a significant and positive Levels relationship to poverty. In other words, the According to Sadono (2004) more unemployment will lead to an increase in unemployment is a problem that often engulfs poverty. the economic activities of a country and is very . important to overcome. This will cause some RESEARCH METHODS negative impacts if the unemployment rate is 1. Operational Definition high. These impacts can be in the form of The definition of operational economic impacts and social impacts. variable is the definition of the variable Economically unemployment has an impact on (expressed in the concept definition), the decline in the number of national products operationally, practically, in the realm of the and the decline in income, while reducing the object of the research / object under study. The level of welfare of society as a whole. variables used in this study are independent According to Sadono Sukirno variables and dependent variables. (2004), the bad effect of unemployment is to Based on the theoretical review and reduce people's income which ultimately the relationship between variables that have MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 22 of 25 been stated previously, the author tries to make side. So Poor People are residents who have a frame of mind that explains how these an average monthly per capita expenditure variables affect poverty. The thinking below the poverty line in Bengkayang framework in this study is that poverty is Regency, in the vulnerable period of 2013- influenced by four economic development 2017. variables, including education, health, unemployment and infrastructure. Then these variables as independent variables (free) / 2. OLS ( Ordinary Least Square) together, with the dependent variable (bound), The method used to analyze this namely poverty as measured by regression study is linear regression with the least square analysis tools. The schematic framework can be method usually known as OLS (Ordinary Least described as follows: Square), which is a method used to determine the magnitude of the influence of an independent variable on the dependent variable, then this research model can be Schematic Framework mathematically written as follows: Education (X 1 ) Y = f (X1,X2,X3.X4) Systematically the

function above is that poverty (Y) Health (X 2 ) Poverty (Y ) will be influenced by Education

(X1), Health (X2), Unemployment Unemploym (X 3 ) (X3), and Infrastructure (X4).

The model of education, health, unemployment, Infrast ructure 4 ) infrastructure and poverty from

the independent variables used in

this study are: a) Education (X1) in this study is referred to Y = β0 + β1X1 + β2X2 + β2X3 + β2X4 + µi expenditure for the construction of In which: educational facilities and infrastructure Y = poverty carried out by the Bengkayang Regency Β0 = constants Government in the vulnerable period of Β1, β2 = parameter 2013-2017 X1 = education b) Health (X2) in this study is referred to X2 = health expenditure for the construction of health X3 = unemployment facilities and infrastructure carried out by X4 = infrastructure the Government of Bengkayang Regency in µ = disturbance error the vulnerable period of 2013-2017. c) Open unemployment (X3) in this study is referred to the development of conditions This analysis aims to find out how much the independent variables influence on of the people who experience unemployment or do not have jobs in poverty, which is related to the variables productive age in Bengkayang Regency. In namely education, health, unemployment and infrastructure. The analysis of the above vulnerable time from 2013-2017. equation is done with the help of the Eviews d) Infrastructure (X4) in this study is referred program version 9. to expenditure for the construction of

infrastructure facilities carried out by the Government of Bengkayang Regency, in RESULTS AND DISCUSSION the vulnerable period of 2013-2017 e) Poverty Level (Y) is the inability of the 1. Effect of Education (X1) on Poverty (Y) in economic side to fulfill basic food and non- Bengkayang Regency food needs measured from the expenditure MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 23 of 25

Education (X1) shows the results of unemployment problem occurs in low-income the analysis of poverty (Y) in Bengkayang groups (especially people with income levels Regency are not significant, if seen from the slightly above the poverty line), the incidence results of the partial t test can be obtained t- of unemployment easily shifts their position to count with the value of education level, -1.449> the poor. This means the higher level of 1,796 so that education has no significant unemployment will increase poverty. positive effect on poverty, which is supported by a significant level of 0.385 <0.050. This 3. Effect of Unemployment (X3) on poverty shows that the Education variable has no (Y) in Bengkayang Regency significant effect on Poverty (Y). This shows The results of the analysis show that that people with high level of education will this path coefficient is not significant because find employment in the area that has a leading the t-count value is -1.517 while the t-table is sector in accordance with their education, 1,796 (t-count = -1.517> t-table = 1,796), thus because this will have more freedom to in this direct relationship pattern, compete in other regions or provinces whose unemployment has a positive effect not business leading sector is in accordance with significant to Poverty, which is supported by the education they have. Probability Value (sig) 0.371> 0.050. The The results of this study indicate that results of the analysis of the direct effect of the main causes of why education levels do not Unemployment (X3) on Poverty in have a significant effect on poverty in Bengkayang Regency showed insignificant Bengkayang Regency because the provision of influence. high budget expenditures for the education According to Sadono Sukirno sector has not been able to create new (2004), the bad effect of unemployment is to employment opportunities to reduce poverty, reduce people's income which ultimately which can increase intellectual unemployment reduces the level of prosperity that someone has created by under-prepared education graduates achieved. The decreasing welfare of the work and professionals. This can cause the level unemployed people will increase their chances of education does not significantly influence the of being trapped in poverty because they have level of poverty. no income. If unemployment in a country is extremely bad, political and social chaos 2. Effect of Health (X2) on Poverty (Y) in always apply and has a negative effect on the Bengkayang Regency welfare of society and the prospects for long- The results of the analysis show that term economic development. the level of health has a significant effect Deffrinica (2017) in her research said because the t-count value is 1,217, while the t- that the unemployment rate affects the poverty table is 1,796 (t-count 1,217> t-table 1,796), rate in Bengkayang Regency, empirical data thus the pattern of this direct relationship has a shows a pattern of unidirectional relations negative and significant effect on Poverty. between unemployment and poverty levels. which is supported by Probability Value (sig) Unemployed people in the household 0.437 <0.050. This means that in terms of automatically become poor because other health, the government has sought as much as family members have inadequate income to possible the budgetary expenditure for health, meet their family's needs in the household. This but the facts in the field are still many people condition (increasing unemployment rate who are less able to enjoy maximum service where the poverty rate actually increases) is from the hospital. found in many Bengkayang districts. When a Dian Octaviani (2001) in Agung group is not a workforce (students / students) Prastopo's Research (2011) said that some passes education and is included in the households in have a very large workforce group, but does not necessarily dependence on the income of salary or wages immediately work, sometimes the waiting obtained at this time. The loss of employment period gets a relatively long job. causes a reduction in most of the revenue used In addition, there are also those who to buy daily necessities. Furthermore, if the deliberately withdraw from the workforce for MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 24 of 25

reasons of finding better jobs. This event will create unemployment (especially in the case of 1. Education has no significant but it has educated unemployment). Unemployment positive effect on the increase of poverty in occurs, because this family life is still borne by Bengkayang Regency. It can be assumed other family members who have insufficient that the education budget increases and income or income to meet household needs and poverty also increase. This means that there low education factors cannot support high is an impact but still low from the income and have good jobs, and thus the Government's Education Expenditures in average income is still above the poverty line. reducing the increase in poverty in Bengkayang Regency. The decreasing number of the existing jobs which is not 4. Influence of Infrastructure (X4) on balanced with the opening of new jobs poverty (Y) in Bengkayang Regency causes more and more educated poor people found in Bengkayang Regency. The results of the analysis show that the path has no significant effect because the 2. Health has a negative and significant effect t-count value is 0.316 while the t-table is on reducing poverty in Bengkayang 1,796 (t-count is 0.316> t-table 1.796), thus Regency, where the health budget increases the results of the analysis of direct influence and poverty decreases. There is a of Infrastructure (X4) on poverty levels in significant impact on the allocation of Bengkayang Regency show that the path health budgets in reducing poverty. coefficient between Infrastructure and Because health facilities have touched all poverty is 0.804> 0.050, which means that poor people in Bengkayang Regency. the pathway has a negative and insignificant effect. 3. Unemployment has no significant effect on Central Bureau of Statistics (BPS) the level of poverty in Bengkayang notes that the 2010-2014 National Medium- Regency. It can be concluded that the high Term Development Plan (RPJMN) has level of unemployment in the community outlined that the 2010-2014 Development occurs because certain family lives are still Vision is "The realization of a Prosperous, borne by other family members who have Democratic and Just Indonesia" (Ministry insufficient income or income to meet of Finance, 2011). The development vision household needs and low education factors was then used as the basis for the cannot support high income and have jobs government in taking various policies. One that good, and thus the average income is of them is the implementation of the still above the poverty line. Accelerated Rural Disadvantaged Areas Infrastructure Development Program 4. Infrastructure has no significant but it has (P2IPDT) implemented by the government negative effect on reducing poverty. It can through the Ministry of Development of be concluded that the infrastructure budget Disadvantaged Regions (PDT). increases and poverty decreases. It means that there is an imbalance in infrastructure CONCLUSION development due to the still low decline in Based on the results of the analysis, discussion poverty. and hypothesis testing, some conclusions can be drawn as follows: BPS, 2014. Bengkayang Regency in Figures REFERENCE 2014 BPS. 2015. Bengkayang Regency in Figures BPS. 2012. Bengkayang Regency in Figures 2015 2012 BPS. 2016. Bengkayang Regency in Figures BPS. 2013. Bengkayang Regency in Figures 2016 2013 MSDJ p-ISSN 2684-6802, e-ISSN 2657-2036 Vol. 1, No. 1, April 2019 Page 25 of 25

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