THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022

Zefanya Grace Enos Simbolon, Pardomuan Robinson Sihombing

Abstract


Education and age are two demographic factors that are believed to have an influence on individuals' economic conditions, including their purchasing power. Understanding the relationship between these variables is important in designing effective economic policies. The purpose of this study is to see how age and education level impact people's purchasing power in Indonesia. Purchasing power, which can be affected by demographic factors such as age and educational background, is an important indicator of a person's economic well-being. This study employs quantitative techniques using multiple linear regression analysis using cross-sectional data from 34 provinces in Indonesia in 2021. Secondary data sources include the Central Bureau of Statistics (BPS) and other relevant sources. The results showed that, with a coefficient of 0.352, education level has a positive and significant influence on purchasing power. This shows that the higher a person's level of education, the greater their ability to purchase goods and services. On the other hand, the age variable does not have a significant influence on purchasing power, but the productive age group of 25 to 55 years old seems to have better wealth. This result can be used by the government to increase people's purchasing power by making economic policies and programmes to increase access to education.

Keywords


Age, Economic Welfare, Education Level, Purchasing Power, Regression Analysis

Full Text:

PDF

References


Ayaviri-Nina, V. D., Quispe-Fernández, G. M., Vanegas, J. L., Ortega-Mejía, V., & Cordero-Ahiman, O. V. (2022). Importance of purchasing power and education in the food security of families in rural areas—case study: Chambo, ecuador. Sustainability, 14(10), 6068.

Drakopoulos, S. A. (2021). Theories of consumption.

Halim, H., Hubeis, M., & Astuty, P. (2022). Factors Affecting People’s Purchasing Power Implications for Unemployment Levels and Poverty Levels in West Java Province. ICLSSEE 2022: Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia, 463.

Hao, L. (2025). Predictive Modeling of Relationship Between Residents’ Consumption Age and Purchasing Power Based on PVAR. Proceedings of the 5th International Conference on Big Data Analytics for Cyber-Physical System in Smart City—Volume 2: BDCPS 2023, December 28–29, Fuyang, China, 235, 401.

Hill, R. (2024). Purchasing Power Parity. In Encyclopedia of Quality of Life and Well-Being Research (pp. 5636–5640). Springer.

Hutagalung, I. P. (2022). Analisis Regresi Data Panel Dengan Pendekatan Common Effect Model (CEM), Fixed Effect Model (FEM) dan Random Effect Model (REM)(Studi Kasus: IPM Sumatera Utara Periode 2014–2020). FARABI: Jurnal Matematika Dan Pendidikan Matematika, 5(2), 217–226.

Martini, A., & Spataro, L. (2024). At the origins of the life cycle hypothesis of Franco Modigliani and Richard Brumberg: an attempt at analysis. The European Journal of the History of Economic Thought, 31(1), 77–110.

Montgomery, D. C., Peck, E. A., & Vining, G. G. (2021). Introduction to linear regression analysis. John Wiley & Sons.

Nwachukwu, G. O. (2024). Human capital development: A driver for educational improvement in Nigeria. British Journal of Education, 12(6), 30–39.

RUKUNDO, E. (2024). THE EFFECT OF THE SHIFT IN WORKING-AGE POPULATION ON GROSS DOMESTIC PRODUCT (1999-2023). ULK.

Singh, A. K., Raghuwanshi, S., Yadav, A., Hasan, A., Sikarwar, P., Mishra, A., & Singhal, A. (2024). The effects of religion on indian buying behavior: A conceptual framework and research agenda. International Journal of Religion, 5(2), 14–22.

Stanciu, M., & Mihăilescu, A. (2014). Purchasing power of the low income population from Romania during the crisis. Procedia Economics and Finance, 8, 466–473.

Wartoyo, W., Lutfiyanti, L., & Ainun, A. S. (2024). Analysis of Monetary Strategies and Policies to Manage the Inflation and Public Purchasing Power in Indonesia. Jurnal Ekonomi Syariah,




DOI: https://doi.org/10.61715/jmeb.v4i1.120

Refbacks

  • There are currently no refbacks.


Copyright (c) 2026 Jurnal Manajemen Ekonomi dan Bisnis

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

View My Stats