DOES THE EDUCATION SECTOR CONTRIBUTE TO OVERCOMING POVERTY IN THE TOMINI BAY AREA OF INDONESIA? METHOD OF MOMENTS QUANTILE APPROACH

Abstract

Although there are numerous potential resources in the Tomini Bay area, their exploitation has not been optimized for the community's benefit, and the poverty rate in the region is relatively high. On this basis, this study was conducted to evaluate the contribution of the education sector, which is believed to be capable of enhancing the quality of human resources and aiding in poverty reduction. Method of Moments Quantile Regression (MMQR) was utilized to analyze ten locations over the past ten years (2011–2020). Results suggested that government expenditures on education, education share in cities, enrollment rate in schools, education level among labor, income level of graduates, and labor production level in the agriculture sector are negatively correlated with the poverty rate in Indonesia. This study advises policymakers on developing the formal sector (labor-intensive investment) to facilitate the incorporation of high school graduates into the labor force by providing work-related skills.