Indonesia Conference Directory

This study aims to determine the effect of basic education rate on unemployment and poverty level based on the classification of urban and rural areas. The data were taken from Wonosobo Regency as the poorest district in Central Java, Indonesia, with a percentage of poor population of 20.32%. Using descriptive quantitative and linear regressions with dummy variable, we analyzed the distinguished influence of basic education rate towards unemployment and poverty level between urban and rural areas. The results show that, generally, basic education rate affects unemployment rate and the level of poverty. The basic education rate influences unemployment rate in both urban and rural areas. However, the basic education rate in urban area does not have an effect as significant as that in rural area in influencing poverty level. Urban people face more competitive workforce market that makes them need more than just the basic education. Therefore, even most of them have finished their primary and secondary schools, it does not mean they are not going to be trapped in poverty. Meanwhile, the basic education of rural people detected affects the poverty level as the more people in there do not finish their basic study, the more of them have no eligibility in doing proper jobs for reaching the wealth.