Determinants of Income Inequality, Average Years of Schooling, Economic Growth, Domestic Investment on Poverty Rates in the Special Region of Yogyakarta Province

Abstract

This study analyzes the impact of income inequality, average length of schooling, economic growth, and domestic investment (PMDN) on poverty levels in the Special Region of Yogyakarta (DIY) from 2009 to 2023. Despite positive economic growth, DIY has the highest poverty rate in Java. Secondary time series data from five districts/cities in DIY were used, sourced from the Central Statistics Agency and the Regional Development Planning, Research, and Innovation Agency. Using multiple linear regression and classical assumption tests, the results show that income inequality, economic growth, and PMDN do not significantly affect poverty levels, while average length of schooling significantly reduces poverty. These findings highlight the importance of education and income equality in addressing multidimensional poverty.