The Influence of Informal Work Force, Poverty, and Education on the Economic Growth of Regencies and Administrative Cities in DKI Jakarta
Year: 2026
Type: article
Abstract: This study aims to analyze the effects of informal employment, poverty, mean years of schooling, and the COVID-19 dummy on economic growth across administrative regencies and municipalities in DKI Jakarta from 2017 to 2023. The study uses panel data from six administrative regions and employs panel data regression. The Common Effect Model was selected as the estimation model, while clustered standard errors were applied to address heteroskedasticity and autocorrelation. The results show that informal employment has a negative but insignificant effect on economic growth. Poverty has a negative and significant effect, while mean years of schooling has a negative but insignificant effect. The COVID-19 dummy has a negative and significant effect on economic growth. Simultaneously, all independent variables significantly affect economic growth, with an R² of 0.7872. These findings indicate that poverty and the COVID-19 period are significantly associated with economic growth, whereas informal employment and mean years of schooling do not have significant partial effects.
Authors: Septano, Ganteng, Fitanto, Bahtiar
Institution: University of Brawijaya
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7225031973