Poverty Dynamics in the Pandemic and Recovery Era: The Role of Health Expenditure, Unemployment, Gender Development, and Economic Growth in Central Java

Asih Sriwinarti; Sri Suharsih; Rini Dwi Astuti; Arrafi Dandi Mahaputra

doi:10.32535/jicp.v9i4.5165

Poverty Dynamics in the Pandemic and Recovery Era: The Role of Health Expenditure, Unemployment, Gender Development, and Economic Growth in Central Java

Asih Sriwinarti, Sri Suharsih, Rini Dwi Astuti, Arrafi Dandi Mahaputra

Abstract

Poverty remains a multidimensional challenge in Central Java, particularly during the COVID-19 pandemic and subsequent economic recovery. This study examines the effects of health expenditure, the Open Unemployment Rate (TPT), Gender Development Index (GDI), and economic growth on poverty across Central Java. Using a quantitative approach, panel data covering 35 regencies and cities from 2019 to 2024 were obtained from the Central Bureau of Statistics (BPS) and Directorate General of Fiscal Balance (DJPK). The Chow and Hausman tests selected the Fixed Effect Model (FEM), with White period robust standard errors addressing heteroskedasticity and autocorrelation. Results indicate that health expenditure, GDI, and economic growth significantly reduce poverty, while TPT significantly increases it. Collectively, these variables significantly explain poverty variations, with an R² of 0.987. The findings emphasize efficient health spending, labor-intensive employment creation, and gender mainstreaming as essential strategies for strengthening regional poverty alleviation policies and promoting inclusive economic development.

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DOI: https://doi.org/10.32535/jicp.v9i4.5165

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