The Impact of Socioeconomic and Demographic Factors on P0, P1, and P2 Poverty in Central Sulawesi

Abstract

This research investigates the factors influencing poverty incidence (P0), poverty depth (P1), and poverty severity (P2) in 13 regencies and municipalities of Central Sulawesi Province over the period 2017–2024. The empirical analysis was conducted using panel data regression techniques through three estimation models: a common effect model, a fixed effect model, and a random effect model. The study utilizes secondary data sourced from the official publications of the Central Sulawesi Provincial Statistics Office (BPS). The results of the study show that real Gross Regional Domestic Product (GRDP) significantly affects P0 but has no significant impact on P1 and P2. Education significantly influences P1 and P2, while its effect on P0 is insignificant. Health conditions significantly affect P0 and P1 but not P2. Labor force participation shows no significant relationship with any poverty indicator, while demographic factors significantly influence P0 but not P1 or P2. These findings suggest that poverty alleviation efforts must be carefully tailored by strengthening economic expansion, enhancing educational outcomes, improving public health conditions, and addressing demographic dynamics. Conversely, labor market policies should place greater emphasis on improving job quality rather than merely expanding labor force participation, thereby strengthening its contribution to poverty reduction.