Determinants of Community Welfare: The Mediating Role of Household Consumption
Abstract
Amidst global economic inequality and the urgency of sustainable human development, this study analyzes the determinants of community welfare in Lelilef Woebulen Village. Using a quantitative approach and Structural Equation Modeling (SEM-PLS), the study involved 147 respondents selected via simple random sampling. Results indicate that education and healthcare services significantly improve welfare. Conversely, income has no significant direct effect, suggesting that nominal growth without effective expenditure management fails to automatically enhance quality of life. A crucial finding reveals that household consumption acts as a robust mediator between education, income, and welfare. This underscores that transforming economic resources into tangible welfare depends on productive consumption patterns. Consequently, policies must focus on strengthening financial literacy and public service access to foster a sustainable standard of living.
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