The Role of Human Capital Based on Education and Health against poverty in 34 provinces in Indonesia

Abstrak

This study aims to analyse the influence of human capital, as measured by education and health, on poverty levels in 34 provinces in Indonesia. Using quantitative methods with panel data for the 2020–2024 period, this study applies a fixed effect model based on the results of the Chow and Hausman tests. Testing is carried out through panel regression, t-tests, F-tests, and classical assumption testing to ensure model validity. The results of the study show that education has a negative and significant effect on poverty, which means that increasing the average length of schooling can reduce the number of poor people. In contrast, health as measured by life expectancy has a positive and significant effect, indicating structural variations between regions that require further study. Simultaneously, both human capital variables have a significant influence on poverty. A limitation of this study is that the capability indicators used are limited to education and health, thus not reflecting the full dimensions of the capability approach. Therefore, future researchers are advised to include other variables such as access to technology, employment opportunities, environmental conditions, or social protection to provide a more comprehensive picture of the determinants of poverty in Indonesia.