The Effect of Human Capital and Unemployment on Poverty Through Economic Growth and The Moderating Role of Investment

The aims of this study are: (1) to analyze the effect of human capital and unemployment on economic growth. (2) analyze the effect of human capital, unemployment, and economic growth on poverty. (3) analyze the effect of human capital and unemployment on poverty through economic growth. (4) analyze the effect of investment moderation between human capital on economic growth. (5) analyze the effect of investment moderation between unemployment and poverty. The approach used in this study uses a quantitative approach. The data is secondary data sourced from the Indonesian Central Statistics Agency and the Central Statistics Agency of South Sulawesi in 2021. The data collection method uses secondary data from documentation related to years of education, unemployment, foreign and domestic capital investment, and Gross Domestic Product. Regional (GDP) and the number of poor people in South Sulawesi Province for 2017-2021. The analytical method uses descriptive statistics, classical assumption, path analysis, and Sobel. The study's results prove that: (1) Human capital positively and significantly affects economic growth. (2) Unemployment has a negative and significant effect on poverty. (3) Human capital has a negative and significant effect on poverty. (4) Unemployment has a positive and significant effect on poverty. (5) Economic growth has a negative and insignificant effect on poverty. (6) Human capital positively and significantly affects poverty through economic growth. (7) Unemployment positively and significantly affects poverty through economic growth. (8) Investment can positively and significantly moderate the relationship between human capital and economic growth. (9) Investment can positively and significantly moderate the relationship between unemployment and poverty.


PENDAHULUAN
The issue of poverty is a problem in almost all countries, including Indonesia. The causes of poverty are pretty diverse, making the poverty rate even higher. Poverty has complex and multidimensional issues and affects various aspects, such as social, cultural, and other aspects, so it needs serious attention from the government (Amalia, 2012;Astuti & Lestari, 2018). Poverty is a condition in which a person cannot fulfill basic needs such as food, clothing, medicine, and shelter (Hardinandar, 2019). The issue of poverty in Indonesia also hit South Sulawesi, and the number is directly proportional to poverty in Indonesia. Table 1 shows the number and growth of the poor in Indonesia and South Sulawesi from 2016 to 2021.   (Alihar, 2018).
Economic growth is a necessary condition for poverty reduction. The sufficient condition is that the growth is effective in reducing poverty. This means that this growth should spread across every income group, including the poor (growth with equity) (Siregar, 2006). Human capital is another factor that needs to be considered to increase economic growth and reduce poverty.
Human capital refers to increased education, health, and other human capacities that can increase productivity (Todaro & Smith, 2003 (Hadiman, 2018;Hilmi et al., 2022;Ilham, 2019) prove that human capital has a negative and significant effect on poverty.
Another factor that can affect economic growth and poverty is related to unemployment. Unemployment is a problem that often plagues the economic activities of a country (Sukirno, 2012). Unemployment is when a person is looking for work but has not found a job (Mankiw et al., 2006). The impact of unemployment is very influential on economic growth in an area. Unemployment is generally also due to the large workforce that is not proportional to the jobs provided by the government, so it cannot absorb labor (Deffrinica, 2019 Table 2 shows that increased investment has increased growth and reduced poverty.

Human Capital Concept
Human capital refers to increased education, health, and other human capacities that can increase productivity (Todaro & Smith, 2003 Improving a More Positive Culture in the Company.

Unemployment Concept
Unemployment is related to a condition of a person belonging to the workforce who wants to get a job but has not yet found a job (Sukirno, 2012).
Unemployment is when a person in the labor force category does not have a job or is actively looking for work (Mankiw et al., 2006).     Table 4 shows the residual value is normally distributed because of the importance of sig = 0.161 0.05. and autocorrelation (DW = 0.64 < 1.628). Based on Table 6 shows that: (1)  to poverty (Z).

Growth (Y)
The results of hypothesis testing prove that human capital has a positive and significant effect on economic growth.   (Hadiman, 2018;Hilmi et al., 2022;Ilham, 2019), proving that human capital has a negative and significant effect on poverty.
The Effect of Unemployment (X2) on

Poverty (Z)
The results of hypothesis testing prove that unemployment has a positive and significant effect on poverty. Higher unemployment will increase poverty.

CONCLUSION
(1) Human capital positively and significantly affects economic growth.
(2) Unemployment has a negative and significant effect on poverty.
(3) Human capital has a negative and significant effect on poverty.
(4) Unemployment has a positive and significant effect on poverty.
(5) Economic growth has a negative and insignificant effect on poverty. (9) Investment can positively and significantly moderate the relationship between unemployment and poverty.

Recommendation
(1) Economic activities that are carried out evenly in various regions can minimize income disparities that have the potential to cause poverty.
(2) Absorption of domestic workers who are more dominant than foreign workers can help increase GDPR and reduce the potential for poverty. (