Exploring The Roots of Human Development: The Role of Poverty, Unemployment, and Educatiion in Indonesia
DOI:
https://doi.org/10.14421/j-mes.2026.051-02Keywords:
Human Development Index, Poverty, Unemployment, EducationAbstract
The Human Development Index (HDI) is a measure of the level of community welfare as seen from three main indicators, namely education, health, and income. The HDI is an important benchmark in assessing the quality of life of the community and the effectiveness of a country's development. One of the strategic efforts to improve the quality of life of the Indonesian people is to pay attention to socio-economic factors that influence the HDI, such as poverty, unemployment, and education. This study aims to analyze the influence of these three factors on the HDI in Indonesia in the period 2014–2023. The approach used is a quantitative approach with a panel data regression analysis method. The data used are secondary data from official national sources, and data processing is carried out using EViews 13 software. The results of the analysis show that partially, the poverty and education variables have a significant influence on the HDI in Indonesia, while the unemployment variable does not have a significant effect. However, simultaneously, the three variables together have a significant effect on the HDI during the study period. This finding emphasizes the importance of strategies for improving education and poverty alleviation in efforts to improve the quality of life of the community. The novelty of this study lies in the coverage of more up-to-date post-pandemic data and the panel approach that provides a dynamic picture across time and region. These results provide policy implications that poverty reduction and increasing access to education need to be top priorities in human development planning in Indonesia.
References
Anand, S., & Sen, A. (2000). The income component of the human development index. Journal of Human Development, 1(1), 83–106.
Baltagi, B. H. (2021). Econometric analysis of panel data (7th ed.). Wiley.
Barro, R. J., & Lee, J.-W. (2015). Education matters: Global schooling data. World Bank Publications.
Becker, G. S. (1993). Human capital: A theoretical and empirical analysis. University of Chicago Press.
Bebbington, A. (2021). Poverty, livelihoods, and human development. Development Studies Review, 39(2), 145–162.
Blanchard, O., & Johnson, D. (2020). Macroeconomics. Pearson.
BPS. (2023). Human Development Index 2023. Central Statistics Agency.
BPS. (2024). Human Development Index by Province 2023. Central Statistics Agency.
Chen, L., & Huang, W. (2022). Education quality and human welfare in developing countries. Journal of Development Economics, 158, 102–113.
Chen, Y., & Huang, R. (2022). Education and human well-being in developing countries. Journal of Human Development, 23(4), 415–433.
Chuenyong, P., (2019). Poverty reduction and human development. World Development, 120, 72–84.
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches. SAGE Publications.
Darvas, Z., & Nemet, G. (2020). Labor markets and human development. Economic Modelling, 91, 314–327.
Fitrani, E., (2022). Post-pandemic poverty and development challenges in Indonesia. Asian Development Review, 39(1), 55–78.
Gupta, S., & Verhoeven, M. (2020). Public spending, employment, and human development (World Bank Working Paper No. 1234). World Bank.
Gujarati, D. (2013). Basic econometrics (5th ed.). McGraw-Hill.
Hanushek, E., & Woessmann, L. (2021). The economics of education. MIT Press.
Hsiao, C. (2014). Analysis of panel data (3rd ed.). Cambridge University Press.
International Labour Organization. (2022). Global employment trends. ILO.
Imelda, I., (2021). Pengaruh pendidikan terhadap IPM di Indonesia. Jurnal Pembangunan Daerah, 9(1), 77–88.
Jha, R., & Reza, M. (2020). Poverty, education, and human development in South Asia. Asian Economic Papers, 19(3), 44–66.
Kasnelly, K., & Wardiah, W. (2021). Kemiskinan dan IPM di Indonesia. Jurnal Ekonomi Regional, 12(2), 89–101.
Lee, J., & Kim, S. (2023). Educational equity and human development in Asia. International Journal of Educational Development, 96, 102–142.
Liu, Q., & Wei, L. (2023). Indirect effects of unemployment on human development. Social Indicators Research, 165(1), 77–96.
Liu, Y., & Zhang, P. (2021). Urban unemployment and human development indicators. Journal of Asian Economics, 76, 101–121.
Muliza, M., & Seftarita, C. (2017). Poverty and human development index in Indonesia. Journal of Development Economics, 18(1), 32–45.
Ningrum, D., & Huda, M. (2020). Determinants of human development in Indonesia. Journal of Social Humanities, 11(2), 145–158.
O'Neill, K., (2020). Education and human development: Global evidence. Human Development Review, 12(4), 225–248.
Pasini, F., & Sahay, R. (2019). Labor market shocks and human development (IMF Working Paper No. 19/45). International Monetary Fund.
Ravallion, M. (2020). Poverty economics. Development Economics Review, 34(2), 101–120.
Sen, A. (1999). Development as freedom. Oxford University Press.
Sumarno, H., & Yulianti, D. (2021). Education investment and long-term development. Journal of Social Economics, 15(2), 100–115.
UNDP. (2021). Human Development Report 2021/2022. United Nations Development Programme.
UNDP. (2022). Human Development Index: Concepts and measurement. United Nations Development Programme.
UNDP. (2023). Human Development Report 2023. United Nations Development Programme.
UNESCO. (2023). Global Education Monitoring Report. UNESCO Publishing.
Wang, X., (2019). Education and social development outcomes. International Review of Economics, 66(3), 289–308.
Wibowo, F., & Gunaepi, Y. (2021). Kemiskinan dan IPM kabupaten/kota di Indonesia. Jurnal Ekonomi Pembangunan, 20(1), 45–57.
Wodon, Q., (2018). Poverty, equity, and human development. World Bank Publications.
World Bank. (2023). Human capital and inequality in Indonesia. World Bank.
This work is licensed under a 