Minimum Wage Policy Found to Play the Strongest Role in Reducing Poverty in Samosir Regency

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Samosir – Minimum wage policy has been identified as the most influential factor in reducing poverty in Samosir Regency, surpassing the effects of increasing tourist arrivals and improving educational attainment. The finding was published by Maylin Sophie Anta Sirait and Syamsul Huda from the Department of Development Economics, UPN “Veteran” East Java in the International Journal of Scientific Multidisciplinary Research in July 2026. The study highlights that increasing household income through wage policies remains one of the most effective strategies for poverty reduction, even in regions with significant tourism potential such as Samosir Regency.

Samosir Regency, located in the Lake Toba area of North Sumatra, is widely recognized as one of Indonesia’s leading tourism destinations. In recent years, tourist arrivals have continued to increase following government efforts to develop Lake Toba as a national priority tourism destination. Despite this positive trend, poverty remains relatively high compared with many other regions in North Sumatra. The situation indicates that tourism growth alone has not yet translated into broad-based economic prosperity for local communities.

Motivated by this challenge, the researchers investigated how tourist arrivals, average years of schooling, and minimum wage policies influence poverty levels in Samosir Regency. The study analyzed secondary data covering the period from 2015 to 2024 obtained from Statistics Indonesia (BPS). A multiple linear regression model, supported by classical assumption tests, partial significance tests, and simultaneous significance tests, was used to evaluate the relationship between these socioeconomic factors and poverty.

Before conducting the regression analysis, the researchers examined the statistical reliability of the model through normality, multicollinearity, heteroscedasticity, and autocorrelation tests. The results confirmed that the regression model satisfied all required statistical assumptions, indicating that it was appropriate for analyzing the determinants of poverty in Samosir Regency.

The findings revealed that tourist arrivals have a negative relationship with poverty, suggesting that an increase in tourism tends to reduce poverty levels. However, the relationship was not statistically significant. According to the researchers, this indicates that although tourism contributes to economic activity, its benefits have not yet been distributed evenly across the local population. Most of the economic gains remain concentrated among individuals and businesses directly involved in tourism-related activities, limiting tourism’s broader impact on poverty reduction.

Average years of schooling also showed a negative relationship with poverty, meaning that higher educational attainment tends to be associated with lower poverty rates. Nevertheless, this variable was likewise statistically insignificant. The researchers explained that improvements in education alone cannot immediately reduce poverty unless they are accompanied by sufficient employment opportunities and economic sectors capable of absorbing a more educated workforce. In other words, education remains an important investment in human capital, but its poverty-reduction impact depends heavily on labor market conditions.

Unlike the other variables, minimum wage demonstrated a negative and statistically significant effect on poverty. The results indicate that higher minimum wages directly contribute to poverty reduction by increasing workers’ purchasing power and strengthening household income. Improved earnings enable families to meet essential needs more effectively, reducing economic vulnerability. Throughout the study period, minimum wage policy emerged as the strongest factor influencing poverty reduction in Samosir Regency.

The overall regression model also showed that tourist arrivals, average years of schooling, and minimum wage jointly influence poverty levels. The model explained approximately 92.83 percent of the variation in poverty, while the remaining 7.17 percent was attributed to other factors outside the scope of the study. These findings suggest that poverty reduction requires an integrated development strategy that combines income improvement, economic development, and human capital enhancement rather than relying on a single policy intervention.

According to Maylin Sophie Anta Sirait and Syamsul Huda from UPN “Veteran” East Java, the research demonstrates that tourism has substantial potential to support regional economic development, but stronger efforts are needed to ensure that its benefits reach a wider segment of the community. They suggest that tourism development should be accompanied by greater participation of local businesses, expanded employment opportunities, and programs that improve workforce skills. At the same time, wage policies remain an essential instrument for protecting household purchasing power and accelerating poverty reduction.

The study offers important policy implications for regional governments seeking to reduce poverty more effectively. Tourism development should not focus solely on increasing visitor numbers but also on strengthening local economic participation and ensuring that tourism-generated income is distributed more broadly. Educational improvement should be supported by job creation and productive economic opportunities, while minimum wage policies should continue to enhance workers' welfare in line with regional economic conditions. Together, these integrated approaches can contribute to more sustainable and inclusive poverty reduction in Samosir Regency.

Author Profile

Maylin Sophie Anta Sirait – Department of Development Economics, UPN “Veteran” East Java

Syamsul Huda – Department of Development Economics, UPN “Veteran” East Java

Research Source

Article Title: The Impact of the Number of Tourists, Average Length of School Attendance, and the Minimum Wage on the Poverty Rate in Samosir Regency, North Sumatra

Journal: International Journal of Scientific Multidisciplinary Research (IJSMR), Vol. 4, No. 7, 2026

DOI: https://doi.org/10.55927/ijsmr.v4i7.96

Journal Link: https://journalijsmr.my.id/index.php/ijsmr

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