Model Testing and Contribution of Antecedent Variable to Absolute Poverty: Low Income Family Perspective in Indonesia

Abstract

Poverty is a classic problem that is never solved except with comprehensive efforts by looking at the problem from various perspectives. This study aims to analyze from the perspective of low-income families the role of short-term vision and uncontrolled consumption as antecedents of absolute poverty. This study used a quantitative approach, using SEM-Amos version 23. The population in this study was all low-income families in South Sulawesi, especially in six districts, namely Makassar City, Jeneponto District, Selayar Islands District, Bone District, North Luwu District, and North Toraja District. The sampling technique was random through 201 heads of households who filled out the questionnaire and were declared complete from low-income families in the six districts. The results of data analysis show that compared to short-term vision, uncontrolled consumption is an antecedent that has a major influence on increasing absolute poverty. This study’s results show a positive and significant contribution of short-term vision to uncontrolled consumption. Partially, uncontrolled consumption is also able to mediate the effect of short-term vision on absolute poverty. Family behavior can be an influential factor in increasing absolute poverty. The family’s ability to overcome internal and external obstacles will reduce the possibility of the family being trapped in absolute poverty.