Analysis of the Influence of the Human Development Index (HDI) and Open Unemployment Rate (TPT) on Poverty in North Sumatra Province

Abstract

Poverty is a fundamental problem for every country, especially for developing countries. The inability to meet basic needs in all aspects of life where people cannot maximize the function of the wealth they have. There is an increase in the number of poor people both from a global scope in Indonesia, especially also in North Sumatra Province. The purpose of this study was to determine and analyze the effect of the Human Development Index (HDI) and the Open Unemployment Rate (OUR) in North Sumatra Province. This study uses secondary data from BPS Province for the observation year 2017- 2022. The research method used is the panel data regression method with the help of the Eviews12 application. The results of this study are a) the Human Development Index (HDI) has a negative and significant effect on poverty in North Sumatra Province, b) the Open Unemployment Rate (OUR) has no significant effect on poverty in North Sumatra Province, c) simultaneously the Human Development Index (HDI) and the Open Unemployment Rate (OUR) have a significant effect on poverty in North Sumatra Province. The results of this study also show that the contribution of the Human Development Index (HDI) and the Open Unemployment Rate (OUR) variables to poverty is 53.21 percent