The Factors Influencing Poverty Rate in East Java Province

The development is the most important thing of a country to achieve the welfare. The welfare can be achieved if there is a decrease in poverty. The objective of this research is to observe and analyze the factors influencing poverty rate. The dependent variable of this research is the percentage of poverty rate and the independent variable are economic growth, minimum wage, and unemployment rate. Data that obtained in this research is secondary data from Central Statistical Agency in terms of panel data covering 38 districts / cities in East Java province of 2006-2015. The data analysis method is using the panel data analysis with Fixed Effect Model Approach. According to this study, the result stated that the economic growth and minimum wage are significant and has a negative effect to poverty rate, and also unemployment are not significant and have negative influence to poverty rate. Keyword: Poverty, Economic Growth, Minimum Wage, Unemployment