Endogenous Modeling of the Effect of Gender Development on Poverty in Indonesia in 2021

Pardomuan Robinson Sihombing, Nurhidayati Nurhidayati, Dyah Purwanti, Sigit Budiantono, Ade Marsinta Arsani

Abstract


Gender development and Poverty are two interrelated issues in the context of development. The study examined the effect of the Gender Development Index (GDI) on Poverty in 514 urban districts in Indonesia in 2021. The modeling uses the 2SLS method with IPG as the instrumented variable, gender empowerment index (GEI), the average length of schooling ratio as an instrumental variable, and Gross Regional Domestic Product (GRDP) as an exogenous variable. The results showed that the Gross Regional Domestic Product, Gender Empowerment Index, and Length of School Ratio significantly positively affected the Gender Development Index. On the other hand, the Gross Regional Domestic Product and Gender Development Index significantly negatively affect Poverty. Comprehensive and targeted policies are needed to increase gender equality in the economy and reduce Poverty

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DOI: https://doi.org/10.31294/jp.v21i2.16797

Copyright (c) 2023 Pardomuan Robinson Sihombing, Nurhidayati Nurhidayati, Dyah Purwanti, Sigit Budiantono, Ade Marsinta Arsani

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License