Determinant factors of fishermen income and decision-making for providing welfare insurance: An application of multinomial logistic regression

• Main Authors: Sukono, Sukono, Riaman, Riaman, Herawati, Titin, Saputra, Jumadil, Hasbullah, Endang Soeryana
• Format: Article
• Language: English
• Published: Growing Science 2021-01-01
• Series: Decision Science Letters
• Online Access: http://www.growingscience.com/dsl/Vol10/dsl_2020_35.pdf

As a country surrounded by the ocean, Indonesia is categorized as a country that has marine potential. The fishermen communities’ economy depends on ocean. However, the fishermen communities live below the poverty line and their average income is less than regional minimum wage. In conjunction with the issue, this study seeks to investigate the factors affecting the income of fishermen communities and right decision to fishermen in covering with welfare insurance in Cirebon, Indonesia. The quantitative study is designed using cross-sectional approach. The data collected by applying random sampling with open-ended questions and interview. A total of 100 fishermen’s have participated in this study. The study used some factors in measuring the fishermen community income, namely coastal environment condition, fish catching technology and location, operational capital, climate (season) condition, fishermen’s age, fishermen’s education, and fishing experience. The data are analyzed using the multinomial logistic regression model by assisting the statistical software, i.e., SPSS-23. The results show that coastal environment condition, fish catching technology and location, operational capital, climate (season) condition, fishermen’s age, fishermen’s education, and fishing experience have significant effects on fishermen income. Interestingly, the factor of coastal environment condition and climate (season) condition have significant negative effects on fishermen income. In conclusion, this study identified that two important factors reduced the welfare level of fishermen (via income). Also, in line with that things, the right decision which can provide to support and assist the fishermen community was by providing the welfare insurance. It is purposely to give them the protection from various risks faced by fishermen.