The Impact of Human Capital on Poverty Levels in South Sulawesi Province

Abstract

One of the main problems faced by developing countries like Indonesia is poverty. Another difficult problem that is passed down from generation to generation is poverty. Education and per capita expenditure are two examples of investment in human resources. South Sulawesi is one of the provinces in Indonesia that has a high level of poverty. quite high. Several factors that contribute to poverty in South Sulawesi include low levels of education, lack of economic and social infrastructure, as well as inequality in income. The HDI has several indicators, where in this research the indicators used are the education index and the per capita expenditure index. The education index is a reflection of the results of development in the education sector which has a strategic position, considering that the quality of Human Resources (HR) reflected in it really determines the level of productivity of a country. The education index is used to measure the dimension of knowledge as a human development variable. This education index is a combination of two educational indicators, namely the expected number of years of schooling and the average number of years of schooling. Per capita expenditure can influence poverty levels (BPS, 2021). The author analyzed the data using quantitative methods and will be analyzed using SPSS. Type of data used is secondary data from the relevant organization, namely BPS. The time series data used is Time Series data for 2010–2023. The analysis used is multiple linear regression analysis. From the results of this research, it can be concluded that the education index and per capita expenditure index has a negative and significant effect on the poverty level. Judging from the R square of 0.926 or 92.6%, this means that the education index and per capita expenditure have an influence on the poverty level in South Sulawesi, while 7,4% is influenced by other variables outside of this research which are not.