Jur

nalPer
spekt
ifPembi
ayaandanPembangunanDaer
ahVol
...
.No..
.,Mont
h..
..Year
..
.. I
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2338-
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onl
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Theur
bansl
umsandprosperi
ty:
Ast udyofl
ow-
income
communitywelfar
e
1 1
SuhelSuhel,I
mam Asngar
i ,Mar ena1,
dal Ari
odi
ll
ahHi
day
at1
Abdul
1
Bashi
r
1
Depar
tmentofDev
elopmentEconomics,
Facul
tyofEconomi
cs,
Uni
ver
sit
as
Sri
wij
aya,Sout
hSumatera,I
ndonesi
a

Cor
respondi
ngaut
hor
:abd.
bashi
r@f
e.unsr
i.
ac.
i
d.

Abst ract.
The st udy i nv estigates t he soci o-economi c condi ti
ons oft he l ow- income
communi t
iesi nur bansl ums,f urt
her ,thisst udyal soi nvestigatest heef fectof
educat ionl evel,ager at e,typeofwor k,thenumberofdependent s,andi ncome
expect ati
onont hel ev elofwel fareoft helow- incomecommuni t
yi nur ban
slums.Thesampl eswer etakenasmanyas115r espondent spur posi v
elyi nthe
threeci ti
esr eceivingt heKOTAKU Pr ogram ar ePal embang,Pr abumul i
h,and
PagarAl am.Themet hodsut il
i
zedar edescr i
ptivequal itat
iveandquant i
tati
ve
appr oachesbyappl yi
ngmul t
ipl
er egr essionmodel s.Thef i
ndi ngsoft hisst udy
i
ndi catet hatj ointlyt he v ari
ables ofeducat ion l evel,age,t he numberof
dependent s,incomeexpect ati
ons, andt ypesofwor khasasi gni
ficantef fecton
i
ncomel eveloft hel ow- i
ncomecommuni ty.Likewi se,par t
iallythev ari
abl esof
educat ionl evel,thenumberoff ami l
ydependent s,incomeexpect ations,and
typesofwor khasaposi ti
v eandsi gni f
icantef fectoni ncomel ev el,whi lethe
agev ari
ablehasasi gni fi
cantnegat i
veef fectoni ncomel eveloft hel ow- income
communi t
yi nur bansl umsofSout hSumat er
a.

Key
wor
ds:I
ncome,
low-
incomecommuni
ty,
Prosper
it
y,Ur
banSl
um,
Wel
far
e

I
NTRODUCTI
ON
Thedevel opmentofeconomi cactivit
iesi nur banar easi sundeni ably
directlypr oporti
onalt ot helevelofwel farefeltbyt hecommuni t
y.Besi des
thest retchingoft heur baneconomyi st hemai nat tract i
onasoner easonf or
i
ndi vidualt ourbani zat
ion.Thiscondi t
ionr aisesthepr oblemsi nurbanar eas.
Suchasl imitedci tycapacit
y,crime,cl eanliness/rubbi sh,healthandsl ums.
Slumsi nt hecity,becomeapr oblem thatisqui teser iousat t
entionf r
om t he
gover nment .Basi call
y,settl
ement s can be r eviewed f r
om a numberof
i
mpor t
antaspect s,namel yland,housi ng,communi ty
,basicf acili
ti
esand
i
nf rastructure,whi ch areintertwined in a soci al,economi c and cul tural
syst em bot hi nasl um envi
ronmentecosy stem i t
sel foraci tyecosy stem.
Slums mustbe vi ewed int heirent ir
et y and intel l
ectuall
yi n a br oader
dimensi on. Accor ding t o Sast r
a,Supar no,& Mar l
ina (2006) sever al
dimensi onsofsl umst hatmustal waysr eceiveser iousat t
entionar el and
i
ssues i n ur ban ar eas, basi c infrastructure and f acil
it
ies i ssues,
1
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nalPer
spekt
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ayaandanPembangunanDaer
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socioeconomic pr
oblems,socio-cult
urali
ssues,ur
ban spat
ial i
ssues,
accessibi
li
tyi
ssues(Yul
ianaetal
.,2017).
Thechal lengef ordevel opingci ti
esl i
esi nt hepr operandi nclusive
managementofsl um set t
lement sift hear eaist opr ogr essi nasust ainabl e
manner( Tanner f elt&Lj ung,2006) .Itisal sorelat edt osoci al,phy si
cal,and
soci alchange, economy ,pol i
tics,andur banenvi ronment .Theci t
iesf unction
as mul ti-
dimensi onaland mul t
i-dimensi onalmachi ne r ooms f orhuman
devel opment( Nocca,2017) .Wel l-devel oped ci tieshave al way sbeen an
attract ionf orr esi dent swhoar elooki ngf oroppor tuni ties( Abubakar ,Romi ce,
& Sal ama,2019;Agni hot ri
,1994;Gl aeser ,2011) .The mai n pur pose of
movi ngorl ivingi nt heci t
yi st oimpr ovewel fareandabet t
erlifeasawhol e.
However ,f
ort hepoorort hel essf or tunat e,urbansl umshaveal way sbeena
relativel yeasysour ceofl iving,accessi bl e,andof tenper manentr esidence.
Theur banar eai spavi ngt hewayt opr osper it
y,t heot hersi deoft heci tyi s
alsocausi ngi nequal ity
,economi candenvi r
onment alchal lenges( Abubakar
etal .,2019;Ar imah,2017;Nocca,2017) .Pr osper ityi n ur ban ar eas i s
i
ncr easi nglywor rying.Wheni tcomest osl um set tlement s,poorgover nance
andweaki nst itut ionscanbel i
nked.Her einliest hepot ent i
alf orengagi ngi n
thisi dea:f orsl ums,ci ti
eshaveacer tai npot ent ialf ori mpr ovementand
over allwel l-bei ng;f ort he ci ty
,t he wayt o achi eve t hisgoali st hrough
prosper ity(Abubakaretal .,2019) .
Theconceptofpr osperi
tyhasr ecentl
ybeenst udi
edasasi gnif
icant
measur eoft hel ifeofacount ry,cityorpopul ation( Abubakaretal .
,2019) .
Recentpr ogressi nunder standi ngpr osperit
yhasbeent hr
eef
old:first
,i t
recognizest hatf rom awel fareper spect i
ve,prosper i
tyisnotonl yli
nkedt o
economi c gr owt h-an aspecthi ghlighted by the l ong-st
anding economi c
monopol yont hegener alconceptofpr osperi
ty( Abubakaretal .,2019;De
Snyderetal .,2011) .Rather,i talso concer ns soci aland environment al
cri
teriathataddr esst hegrowi nggapbet weenrur alandur banareas.Ont he
othersi de,pr osper i
tyisar elativeconceptr athert hanan absol uteone
(Abubakaretal .,
2019; Yuli
anaetal .
,2017) .
Therel
atedprevi
ousstudies,suchasst
udi
esconduct
edbySiregar(
2013)
he f
t indi
ngs of t
he study showed t hatt
he l
evelofwi l
li
ngness oft he
communi t
ywasqui tehigh,at64%.Thesi gnifi
cantvar iablesi nfl
uent i
alt o
receivet heprogram ar eage, gender , wor k,areaof​ ori
gin, numberoff ami l
ies,
landar ea,numberofbui ldingf loors,l engthofst ay ,ageoft hebui l
ding,
numberofr ooms,t herei saguar ant eeofget tingSHMRSSandt herei sa
guar antee of compensat ion for r elocat i
on cost s. Fur t
hermor e,st udies
conduct edbySast ant
i&Fi briani(2019)t hi sfi
ndingsoft hest udyshow t hatt he
priorit
yf actorsf orr i
verbanksl um ar easar eur ban land f act or
s,spat ial
factorsandbui ldingowner shipst atusf act ors.Priorityfactor sthatinfluence
theexi stenceofdenseur bansl umsar eur banl andf act ors,spat i
alfact or s
andeconomi cfactors.Whi lethepr ior i
tyf actorst hatinfluencet heexi stence
ofsl um ar easal ongt her ai
lr
oadt racksar et heowner shipst atusoft he
building,economi cfactorsandspat ialf actors.
Kr
isandr
iyana,
Ast
uti
,&Fi
tr
iar
i 2019)i
ni( nherst
udyf
oundt
hat
.sl
um ar
eas
wer
ear
east
hatar
enegl
ect
edf
rom ur
bandevel
opmentwi
thenvi
ronment
al
2
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nalPer
spekt
ifPembi
ayaandanPembangunanDaer
ahVol
...
.No..
.,Mont
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..Year
..
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pri
nt)
;
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8520(
onl
i
ne)

condit
ionsthathavedecr easedphy sical
,socio-economi candsoci o-cul
tural
quali
tyandwer einhabitedbypoorpopul at
ion,densepopul ation,andwi t
h
minimalinfr
astructur
e.InSur akartatherearet hr
eety pologiesofsl um areas,
whichar eslumsal ongt her i
verbanks,densel ypopul atedur bansl umsand
sl
um ar easalongther ail
roadt r
acks.Manyf actorscanaf fecttheexi st
ence
ofslum areas.Thesef actorsincludeur banizati
on,infrastructure,economy ,
urbanland,spat i
alplanni ng,urbanat tract
iveness,soci o-cultural
,buildi
ng
ownershipstatusandl engthofst ay.
Ontheot hersi de,thest udyconduct edbyHandi t
o&I mr on( 2015)the
result
sshowedt hatt hepat ternofmeet i
ngt hef oodneedsoft hepoordepends
ondai l
yincome,t hereforet hepoorhav eawayt obeabl et osur vi
vewi t
hl ow
and uncertai
ni ncome.Meanwhi l
e,Dy ah,Kur niawan,& Usman ( 2010)t he
fi
ndingsoft hisstudyi st hedev el
opmentgui dance( ar r
angementdi recti
ons),
suchasset tl
ementi nfrastructureimpr ovement s,suchaspr ocurementofopen
greenspacef acil
it
ies,improv ingthequal it
yandquant ityofcl eanwat ersupply,
i
mpr ovementofdr ainagef acil
it
iesandgar bagedi sposalsy stems.I nt
ensit
y
setti
ngsofbui l
dingsi nresidenti
alar easinthef or m ofr estr
icti
onsonKDB70%
andKLB140% andt hecont r
olofi ntensit
yoft radear ea.Thear rangementof
socialandeconomi ci mprov ement ,i
nor dertomi nimi
zingt heTunj ungansquar e
settl
ementproblemsandopt i
mizingitspotencies.
We al soobser vether esultsofst udiesconduct edbyHest on&Yusuf
(2013)t he results oft he studyt hatt he success ofsoci alassist
ance in
rearrangementur bansl umsdependoni ncreasingthecapaci t
yofgov ernments
andcommuni ti
esgov ernansi.Increasedcapaci tyofgov er nmentgov ernance
canbedonebyencour agi
ngt heRegi onalExecut i
ve,gav eacommi t
mentt o
establishpriori
tyar easf orqual it
yi mpr ovementofsoci alar eas.Forminga
business uni tarea t hathas t he task ofi mproving the qual it
y ofsoci al
structuri
ngslum.I ncreaset hecapaci tyofcommuni tygov ernancebedonewi t
h
thecommi t
mentofci ti
zens,act i
v el
yi nvolved in deci
sion- making,planning,
i
mpl ement ati
on,mai ntenance,moni tori
ngandi mprovi
ngt hequal i
tyofsoci al
contributi
oninstructuringslum pr i
orit
y.
I
nthisr egar d,thisstudyf ocusesont helev elofwel fareofl ow-
income
communi t
yi nur bansl um ar eas.Asex plai
nedi nthepr evi
ousi nt
roducti
on,that
thi
sresearchi sstillinter
estingt ostudy,besidest hatresearcht hatfocuseson
urbanslum set tl
ement sisst il
lrelat
ivel
ylimi t
ed,t herefor
et hisstudyai mst o
deter
minet hef actorsthataf fectthewelfar
el eveloft helow-i
ncomecommuni ty
i
nt heurbansl um.Thesef actorsi nt
ermsofsoci o-economi cv ari
ablessuchas
educati
onl evel, ager ate, t y peofwor k,t henumberofdependent s,and
i
ncomeexpect ati
on.I nt henextsect ionwedescr ibet her esearchmet hod,
resul
tsanddi scussi on,andf i
nallytheconclusionsoft hisstudy.

METHODS
Thisstudyanal
yzest hel
evelofwelf
areofl
ow-i
ncomecommuni t
yinurban
sl
ums.Ast heplaceofr esear
chisintheareaofSouthSumatraProv i
nce.The
obj
ectofthisresear
chi slow-
incomecommuni tywhoacceptastargetsofthe
Cit
ywithoutSlumsPr ogram (
KOTAKU) .Thethr
eecit
iesr
eceiv
ingtheKOTAKU
3
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ayaandanPembangunanDaer
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Program ar ePalembang,Pr abumul ih,andPagarAl am.Thesampl eswer et aken

asmanyas115r espondent spur posively.Ther espondent shavethecr i
teriaof
thelow- i
ncomecommuni ty( MBR)bel ow t hepov ert
ylineoft hePr ovinceof
South Sumat ra as ofSept ember2018,namel y earning IDR 441,049 per
capita/mont horearningIDR2, 035,988/ household/mont h.Toanalyzet hel evel
ofwel fare oflow income i ndi
viduali n ur ban slums used qual i
tat
ive and
quant i
tativ
edescript
iveusingcr osst abul at
ion.Toest i
mat ethewelfarefunct i
on
theincomepr oxyisused,witht hefollowi ngmodel :

I
NC=f(
EDU,
AGE,
TO,
FAM,
RE) (
1)
Fur
ther
mor
e,t
hemodel
speci
fi
cat
ionsar
easf
oll
ows.
NCi=α0+α1EDUi+α2AGEi+α3TOi+α4FAMi+α5REi+εi
I (
2)
Where:INCislow- i
ncomecommuni t
y;EDUi seducationl ev el
;AGEisagerat
e;
FAM isfamil
ydependent ;REistherevenueexpectati
ons;andTOi sthetypeof
work;thenotati
onofα0 i sconstantscoeff
ici
ent;α1,2,3,4,5 i
sthepar
ameters
coeff
ici
entoftheindependentvari
abl
e;andεiiser ror
termi nthemodel
.
Thenextst epi stoev aluatethemodelbasedont hr
eecr i
teri
ai.e( 1)
economet ri
cs cr iteria: conduct ed wi t
h OLS v iol
ati
on t ests incl
uding
autocorrel
ati
ont est s,het er
oscedasticitytest
s,andmul ti
coll
inear
itytest
s;( 2)
stati
sti
calcrit
eri
a:donebyl ookingatt hecoeffi
cientval
ueoff -t
estandt -t
est;
and( 3)economi ccr it
eria:donebyl ookingatthesignoneachcoef fici
entofthe
i
ndependentv ariable.Theest i
mat i
onr esul
tsareinaccordancewiththeexisti
ng
economi ctheoryandpr ev i
ousstudies.

Tabl
e1.Def
ini
ti
onofv
ari
abl
eoper
ati
ons
Var
iabelandDecr
ipst
ions Uni
t Definition
I
NC : Low-i
ncomecommuni
ty I
DR Thecommuni tyincome
(
MBR) belowt hepov ertylineofthe
ProvinceofSout hSumat r
a
asofSept ember2018,
namel yMBRear ni
ng
IDR.441, 049per
capita/ mont horear ni
ng
IDR.2, 035,988/ household
permont h
EDU : Educat
ionl
evel year Theeducat i
onl evel i
sthe
l
astl ev elofeducat ion
achiev edbyr espondent s
AGE : Ager
ate year Theageoft her espondent
atthet i
meoft hesur v
ey/
survey
FAM : Fami
l
ydependent number Thenumberofper sonbor ne
bytheheadoft hef amily
consi stingofhi swi fe,
chil
dr enandot hers,

4
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nalPer
spekt
ifPembi
ayaandanPembangunanDaer
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..Year
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pri
nt)
;
2355-
8520(
onl
i
ne)

Var
iabelandDecr
ipst
ions Uni
t Defini
tion
TO : Typeofwork dummy Thet ypesofwor kare
processedf oodst alls,
home
i
ndust ri
es,anddayl aborer
s
RE :I
ncomeexpect
ati
ons I
DR Incomeexpect ati
onsar ea
numberoff ut
ur eincome
expectationsoft he
respondentmeasur edbyt he
diff
erencebet weent heage
ofther espondentandt he
i
ncomer eceived

RESULTSANDDI
SCUSSI
ON
Socio-economi ccondi t
ionsofl ow- incomecommuni ti
esinurbanslums
Accor dingt ot heCent ralSt atisticsAgency( BPS)sl umsar eareasorareas
ofresi dencet hatar einhabi tedbyagr oupofper sonwhooccupyt empor ar
y
buil
dings,noaccesst osaf ewat ert odr ink,nopr opersani t
ati
onf aci
li
ti
es,and
i
nadequat e env ironment alcondi t
ions.Fur thermore,t he Wor l
d Bank (1999)
expl
ainst hatsl umsar eanov erlooked par tofur bandev el
opment .Thisis
i
ndicat ed by t he soci o-demogr aphi c condi t
ions i n slums such as hi gh
populat iondensi ty,env i
ronment alcondi t
ionst hatar enotl i
vableanddonot
meett he r equirement s and t he l ack ofeducat ionalf aci
li
ti
es,health and
socio-cul t
urali nfrastructure.Themai nf actorfort hegr owthofsl umsi sthe
unstoppabl ef l
ow ofur banizat ion.Thef oll
owingex pl ai
nedthesoci o-
economic
charact eri
st i
csoft hepopul ationi nur bansl umsi nSout hSumat raProvince,
usi
ngt hecr oss- tabulati
onasf ollows:

Tabl
e2.I
ncomel
evel
basedoneducat
ionl
evel
respondent
sinsl
ums(
per
cent
)
Incomelev
el(
inmill
ionr
upi
ah)
Educat
ionl
evel
<2 2–4 >4
I
ncompl etepri
maryschool 48, 33 3,
03 0,
00
Pri
mar yschool 30, 67 12,12 0,
00
Juniorhi
ghschool 12, 13 15,15 0,
00
Seniorhighschool 8,87 60,6 48,
00
Bachelordegree 0,00 9,
09 52,
00
Source:processedf
rom fi
eldr
esear
chdat a,2019

InTable2,itcanbeseent hatrespondent swi thaneducat i

onlevelthat
i
ncompl et
eprimaryschoolar e48.33per centonav er
ageear ni
nglessthanIDR
2,000,000 permont h.On t he otherhand,r espondentswi th a hi
gh school
educat i
onare60.6percent,withanav erageincomeofbet weenIDR.2,000,
000-
IDR.4,000,000permont h.Thisshowedt hatthei mportanceofeducati
onint he
family.Educati
onisbelievedtobev eryinfl
uentialonone' sski
ll
s,behavi
orand
atti
tudes,andinfl
uencesone'slevelofincome.
5
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nalPer
spekt
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ayaandanPembangunanDaer
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8520(
onl
i
ne)

Tabl
e3.I
ncomel
evel
basedont
heageofr
espondent
sinsl
ums(
per
cent
)
I
ncomelevel
(inmil
li
onr
upi
ah)
Ager
ate
<2 2-4 >4
<30 60,
00 40,00 0,
00
30-60 42,
57 56,43 0,
99
<60 75,
00 25,00 0,
00
Sour
ce:pr
ocessedf
rom f
iel
dresear
chdata,2019

A person'sproductiv
ityatwor kisgreatl
yi nfluencedbyage.Gener all
y
someonewhoi satpr oducti
veagewi l
lbeabl et oear nmoreincomet han
someonewhoi sofnonpr oducti
veage.Thisagest ructurewi
l
laff
ecteconomi c
acti
vit
ieswhi chcar r
iedoutbyt hatper
son.Int het abl
eitcanbeseent hat
respondentswhower ei ntherangeof30-60y ears,asmuchas56. 43percent
haveincomebet weenIDR.2,000,000-I
DR.4,000,000permont h.Thi
scondit i
on
showed a di rectrel
ati
onship between t
hepr oduct iveageand thelevelof
i
ncomer ecei
vedbyr espondents(Tabl
e3).
Tabl
e4.I
ncomel
evel
sbasedonf
ami
l
ydependent
sinsl
ums(
per
cent
)
I
ncomel
eveli
nmi
l
li
onr
upiah)
Fami
l
yDependent
s(per
son)
<2 2-4 >4
<3 40,00 55,00 5,
00
3-5 38,36 54,79 0,
00
>5 45,45 54,54 0,
00
Source:pr
ocessedf
rom f
iel
dresear
chdat
a, 2019

InTabl
e4,asmuchas54. 79percentofrespondent
sear nbet
weenI DR.
2,000,
000-IDR.4,
000,
000andhavefamilydependenci
esbetween3t o5person.
I
nt heory,
thenumberoff
amilydependentswil
lprovi
demotivat
ionforsomeone
towor khardt
omeettheneedsofthei
rfamil
ylif
e

Tabl
e5.I
ncomel
evel
sbasedont
ypeofwor
kinsl
ums(
per
cent
)
I
ncomel ev
el(inmill
i
onr
upi
ah)
Ty
peofwor
k
<2 2–4 >4
ProcessedFoods 72,00 28,00 0,00
Homei ndustry 67,86 28,57 3,57
Dail
yLabor 78,72 21,28 0,00
Et
c 60,00 40,00 0,00
Source:processedf
rom f
iel
dresear
chdat
a, 2019

Basedont hetabl
e,t
heaveragerespondentearnsl
essthanIDR.2,000,
000,
wit
ht hetypeofwor kbeingprocessedf oodstall
s,homeindustri
esandday
l
aborers.Ther estwil
learn between IDR.2,000,
000 -IDR.4,000,
000.This
condi
tionshowedthatmostrespondentsworkintheinf
ormalsector(
Table5).

Det
ermi
nant
sofi
ncomel
evel
sofl
ow-
incomecommuni
ti
esi
nur
bansl
ums

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Thedi agnostict estusi ngser i

alcorrel
ati
on( LM t est)Br eusch-
Godf r
ey
crit
eriashow t hatpr obabilit
yofchi -
cquaresv al
ueof0. 491gr eat
erthant he
signif
icantl evelof0. 05,thenHo isaccepted,whichmeanst hemodeldoesnot
experienceaut ocorrelati
onpr oblemsAut ocorr
elat
iont est.Fur t
hermore,using
theHet eroskedasticitytest:ARCH,obt ainedchi -
squarespr obabi l
it
yv al
ueof
0.73gr eaterthant hesi gnif
icantl
evelof0.05,t
henHoi saccept ed,whichmeans
themodeldoesnotexper i
encet heproblem ofheterokedasticity.Al
lvariabl
es
haveav alue of v ari
ance i nf
lat
ion factor(VIF) <10,concl uded free of
mul t
icolli
nearity.
Tof i
ndoutt heef fectofeducat i
onl evel
,age,fami lydependent s,income
expect ati
ons, andt y
peofwor koni ncomel eveli
nur bansl umsi nSout hSumat r
a
Prov ince.Ther esultoft heest imat i
onmodelshowst hatt hef -testv alueis
125. 0661andt hepr obabi l
it
yv alueof0. 0000i ssmal l
ert hant hesi gni
ficance
l
ev elof0. 05.Soi tcanbest atedt hatal lindependentv ar iablesi .e.education
l
ev el,age,f ami l
ydependent s,t ypeofwor k,andi ncomeex pect ati
onhav ea
significantinfluenceont hel eveloft hei ncomel evelofl ow- incomecommuni t
y
fami li
esi nur bansl umsar easi nSout hSumat raProv i
nce.I talsocanbeseen
from t hedet erminationcoef ficientequalt oR2 is0. 851565.Thi smeanst hat
variationsi nt heincomel eveloft hel ow- incomecommuni tyi nur bansl umsi n
Sout hSumat raPr ovincecanbeexpl ainedbyt hev ariationoft hedependent
variableoft heeducat ion lev el,age,f ami l
ydependent s,t ypeofwor k,and
i
ncome expect ations ar e 85. 15 per cent ,the remai ning 14. 85 per centi s
deter mi nedbyt hev ariationofot herv ariablesoutsidet hemodelusedi nt hi
s
study .

Tabl
e6.Ther
esul
tofmodel
est
imat
ion
Dependentv
ari
abl
e=I
NC
Vari
abl
e Coef fi
cient t
-t
est Si
g.
15. 97888* *
*
C Const
ant 3.
174031 0.
0000
( 3.17403)
0.060032* *
*
EDU Educat
ionl
evel 2.
465157 0.
0153
(0.024352)
-
7. 826452* **
AGE Ager
ate -
8.563501 0.
0000
(-0.913931)
4.335796* *
*
TO Ty
peofwor
k 2.
836499 0.
0000
(1.528573)
4.041938* *
*
FAM Fami
l
ydependent 9.
787362 0.
0000
(0.412975)
Revenue 1.231592* *
*
RE 10.
98201 0.
0000
expect
ati
ons (0.112146)
R2=0.
8515;
Fstatistic=125.
066;
Prob(F-statistic)=0.
000,
DWstatsitic=1.
803905
Not
e:t
hel
evelofsi
gni
fi
cantat*
**1%,
**5%,
*1%

Theeffectofeducati
ononincomelevel
Theest i
mationresul
tsobtai
nedstat
ist
ical
l
yt hecoeff
ici
entv
alueofthe
educat
ionlevelvari
ableof0.060032andt hepr obabi
l
ityval
ueof0.0153is
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smal l
ert hant hesi gnificantl ev elof0. 05.Thust heeducat i
onalv ariablewas
signi
ficantand posi ti
v elyi nfluencest hei ncomeofl ow i ncomecommuni ty
famili
esi nur bansl um ar easi nSout hSumat raPr ovince.Thi smeanst hatt he
hypothesi sthatther ei sanef f
ectofeducat ionont hei ncomel evel ofindiv i
duals
i
nt hesl um ar easofSout hSumat r
aPr ov i
nceisaccept ed.Theeducat i
onl ev el
wasonemeasur eofaper son'squal it
y,t hehigheraper son'seducat ionwi l
lbe
mor er ati
onali nt hewayoft hinking.Fr om t heest i
mat i
onr esul tsshowst he
valueoft hecoef f
icientofr espondenteducat i
onl evelwas0. 060andt heef fect
wasposi ti
veonf ami l
yi ncome.Thi smeanst hati fther ei sani ncr easei none
l
ev elofeducat ionf oreachi ndividual ,t
hei ncomer eceiv edwi llincr easeby0. 060
or6per cent.Thiscanbeseent hatr espondent swi t
haneducat ionl ev eldidnot
compl etepr i
mar yschoolasmanyas48. 33per centwi thanav er agei ncomeof
l
esst hanI DR.2, 000, 000permont h.Ont heot herhand, respondent swi t
hahi gh
schooleducat ionar e60. 6per cent ,withanav eragei ncomeofbet weenI DR.
2,000,000-I DR.4,000, 000permont h.Educat i
oni sbel i
ev edt obev eryi nfluential
onone' sskill
s,behav i
or ,andat t
itudes,andi nfluencesone' sl ev elofi ncome.
Thismeanst hatt hehi gheraper son'sl evelofeducat ion,t hemor ei twas
possiblef orthatper sont oobt ainahi gheri ncome.Thi sf indingi ssuppor tedby
theresul tsofst udybyPut r i&Set iawina( 2013)wasal sof oundev idencet hat
educat i
onl evelhasasi gnificantef fectoni ncomel evels.

Theef fectofageoni ncomel evel

Theest i
mat ion resultsobt ained st ati
sticall
yshow t hatthecoef f
icient
valueoft heagev ariableof- 7. 826452andapr obabil
it
yv alueof0. 0000smal l
er
thant hesi gnifi
cancel ev elof0. 05.Thust heagev ar
iablehasnegat ivesignand
signifi
cantef fecton i ncome l eveli n ur ban sl um ar eas in Sout h Sumat ra
Prov i
nce.Thi smeanst hatt hehy pothesi sst ati
ngt hattherewasani nfl
uenceof
ageont hei ncomeofl ow i ncomecommuni tyf amili
esi nthesl umsofSout h
Sumat r
a Pr ovince i s accept ed.A per son's pr oducti
vity atwor ki s great ly
i
nf l
uencedbyage.I ngener ali ndi vi
dualwhowasatapr oduct i
veagewi l
lbeabl e
toear nmor ei ncomet hanani ndivi
duali sofnon- product i
veage.Fr om t he
estimat i
onr esul tsoft her egr essi onmodel ,thecoef f
ici
entoft heagev ariable
valueof–7. 826452meanst hati fdur ingt hepr oduct i
veage,t hei ncomel ev el
willri
se.Buti ft heagewasnol ongerpr oduct i
ve,therewasadecr easeint he
l
ev elofi ncome,t herefor et hedi rectionoft hecoef fi
cientvalueoft heage
variableisnegat ive.Thiswassuppor tedbyr esearchbyJul i
anto&Ut ari(2017)
thest udyf oundt hatagehasaposi t
ivesi gnandsi gnif
icanteffectoni ncome
l
ev el.

Theef fectoft ypeofwor koni ncomel ev el

From t heestimationr esultsobt ainedst ati
st i
call
ythecoeffi
cientv alueof
thewor kty pei s4.335796andt hepr obabi l
it
yv alueof0.0054smal lert hanthe
0.05 signifi
cance l ev
el.Thus t he v ariablet y
pe ofwor ki s si
gnificantand
posit
ivelyinfluencesthei ncomel evelinur bansl um inSouthSumat raPr ovince.
Thismeanst hatthehy pothesisst atingt hatther ewasanef fectoft het ypeof
workont hei ncomeofl ow incomecommuni tyf amili
esintheslumsofSout h
Sumat raPr ovincewasnotr ejected.Thet y
peofwor kperf
ormedwi lldet er
mine
theincomer eceivedbyr espondent s.Inaddi ti
on,t hetypeofwor kaper sonwi l
l
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see in accordance wi t
ht he skil
l
s possessed.From the result
s ofdat a
processing,t
hecoeffi
cientofwor kt
ypeis4.
335796andtheeffectissigni
fi
cant
.
Itmeanst hatther
ear edi ff
erenttypesofwor kdonebyr espondent sasa
determinantofthel
evel ofi
ncomer eceiv
ed.

Theef fectoff ami lydependent soni ncomel ev el

Theest i
mat ionr esul t
sobt ainedst atisticall
yt hecoef fi
cientv alueoft he
familydependent sv ariable of4. 041938 and a pr obabili
tyv alue of0. 0000
smal l
ert hant hesi gnificancel evelof0. 05.Thust hedependentf ami lyvariable
hasposi tivesi gnandsi gni fi
cantef f ectont hei ncomel evelinur bansl um ar eas
i
nSout hSumat raPr ov ince.Thi smeanst hatt hehy pot hesisst atingt hatther eis
ani nfluenceoff ami lydependent soni ncomel eveli nur bansl umsofSout h
Sumat raPr ovincei saccept ed.Fami l
ydependent swer et heobl igationoft he
headoft hef ami lyt omeett hef ami ly'
sl i
vingneeds.Thegr eat ert henumberof
dependent s,af ami lyheadshoul dbemor emot ivatedi near ningal i
vingear ning
hisf ami lyi ncome.Fr om t he est imat ion r esults,i tcan be seen t hatt he
coefficientv al
ueoft hef ami l
ydependentv ariablei s4. 041938,meani ngthati f
therei sanaddi ngof1per sonoft hef ami l
ymember ,thent hei ncomel evelwi l
l
ri
seof4. 04per cent .Thecoef f
icientv aluer ef l
ectst her elationshi pcondi tion
betweenf ami l
ydependent sandt hei ncomel evelofr eceived.Asar esultoft he
previousdi scussi on, itwasseent hatasmanyas54. 79per centofr espondent s
earnbet weenI DR.2, 000, 000-I DR.4, 000,000andhav ethenumberoff ami l
y
dependent sbet ween3t o5peopl e.Thi sf indingwasi nl i
neandsuppor tt he
studyconduct edbyMur ti
,Fat horrazi ,&Musl i
hat i
nni ngsi h(2017) .

Theef f ectofi ncomeexpect ati

onsoni ncomel ev el
Fr om thecal cul ationr esult
sobt ainedst ati
st i
callyt hecoef f
icientv al
ueof
theincomeexpect at ionsv ari
ableis1.231592andapr obabilit
yv alueof0. 0000
smal l
ert hant he0. 05si gni f
icancelevel.Thust hei ncomeex pectationv ariabl
e
wassi gnifi
cantandposi t
ivelyinfl
uencest heincomeofl owi ncomecommuni t
y
fami l
i
esi nur bansl um ar easi nSouthSumat raPr ovince.Thi smeanst hatt he
hypothesi sst ati
ngt hatt herewasani nfluenceofi ncomeex pectationsont he
i
ncomel eveli ntheur bansl umsofSout hSumat raPr ov incei saccept ed.Int he
theoryofconsumpt ionoft hel i
vecyclehy pothesisiti ssai dt hatfut ur
ei ncome
expect ationswi l
ldet er minet heamountofconsumpt ionexpendi ture.Thi swas
certai
nl yr elated to a per son'sage.I ncome expect at i
on v ari
able,f rom t he
calculationr esult
si ssi gnifi
cant,buthasanegat i
veef f
ectont hel ev elof
i
ncomer eceiv edbyr espondent s,withacoef ficientv alueof1. 231592.Thi s
meanst hatt hehi gheri ncomeexpect ations,thehi ghert hel evelofi ncome
receivedbyr espondent s.

CONCLUSI
ONSANDRECOMMENDATI
ONS
Conclusi
ons
Thesocio-
economiccondit
ionsoft helow-i
ncomecommuni ti
esinurban
sl
umsi nSouthSumatracanbeconcl udedasf ol
lows,t
hel ev
elofhighschool
educati
onwas52.17percent
,andthosewi t
hjuni
orhighschooleducati
onbelow
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44.33percent .Fur thermor e,asmanyas87. 83per centwer ebet weent heages

of30-60y ears,t her emaining8. 7per centand3. 48per cent ,respect i
v el
yaged
l
esst han30y ear sandmor ethan60y ear s.Thisconditi
onshowst hatr elativ
ely
manywer ei nt her angeofpr oductiveageorwor kingage.Thenasmuchas
63.48 percentofr espondent s hav ef amil
y dependent s bet ween 3 t o5
i
ndi v
idual
s.Ther estar elesst han3andabov e5i ndivi
duals,r espect ively17. 39
percentand19. 13per cent.Thet y peofwor kcar ri
edout ,asmanyas40. 87
percentwor kascasualdai lylaborers,wor ki nthehomei ndust ryasmuchas
24.35per cent ,andopenpr ocessedf oodst al
lsasmuchas21. 74per cent .
Becauseofl i
mi tedabi l
it
ythus,t het y
peofwor kperformedi sr el
ativelylimi t
ed,
most l
ywor kingi nt heinformal sector.
Ther esultsofmodelest i
mat i
on,i twasobt ainedthatj oint l
yt hev ariables
ofeducationl evel, age,familydependent s,i
ncomeex pectations, andt het ypeof
wor kofthel ow- i
ncomecommuni tyhasasi gni
fi
cantef fectoni ncomel evel.
Likewisepar t
iall
yeducat ionv ari
ables,fami lydependents,incomeex pectat i
ons,
andt ypesofwor khasaposi tivesignandsi gnifi
cantef f
ectoni ncome.Whi l
e
theagev ar i
abl ehasanegat i
v esignandsi gnifi
canteffectoni ncomel ev elin
urbanslumsofSout hSumat eraProv i
nce.
Recommendat i
ons
Thepolicyr ecommendat i
onsweof f
erinthisstudyar etheneedf orgood
urbanspat i
alplanni ngsot hatslum set t
lementscanbecont r
oll
ed,besidesthat
policymaker sal soi ncreaset hepr ovisi
onofl i
vablehousest hatareaf for
dable
forl ow- i
ncomepeopl ei nur banar eas,aswel lasi ncreasepubl i
cf acil
it
iesin
structuring activi
ties.sl um ar eas,especi al
ly urban areas by bui l
ding the
facili
tiesand i nfrastr
uct ur
eneeded byt hecommuni t
y.On t heotherhand,
urbani zati
oncont rolneedst obei mpr ovedthroughst rengtheni
ngeconomi c
i
nst it
ut i
ons in suppor ting ruraldev elopment.Fur ther
mor e,f ut
urer esearch
requi r
es expandi ng the scope ofr esearch,forex ampl ein cit
ies in South
Sumat ra.Besidest hat,i
tcandev elopamodelbyaddi ngot hersocio-
economi c
variables.

ACKNOWLEDGMENT( ifany)
Thi
sresear
chwasfundedbyDI
PA-
BLUofUni
ver
sit
asSr
iwi
j
aya2019.

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