The role of zakat for poverty alleviation and income inequality reduction

This research aims to analyze the role of zakat distribution program specifically in eradicating poverty and reducing income inequality among groups in urban and rural areas. The research takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (abbreviated...

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Main Authors: Ayuniyyah, Qurroh, Pramanik, Ataul Huq, Md Saad, Norma, Ariffin, Muhammad Irwan
Format: Proceeding Paper
Language:English
English
Published: 2017
Subjects:
Online Access:http://irep.iium.edu.my/71456/
http://irep.iium.edu.my/71456/2/37277.pdf
http://irep.iium.edu.my/71456/9/71456%20The%20Role%20of%20Zakat%20for%20Poverty%20Alleviation%20and%20Income%20Inequality%20Reduction.pdf
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author Ayuniyyah, Qurroh
Pramanik, Ataul Huq
Md Saad, Norma
Ariffin, Muhammad Irwan
author_facet Ayuniyyah, Qurroh
Pramanik, Ataul Huq
Md Saad, Norma
Ariffin, Muhammad Irwan
author_sort Ayuniyyah, Qurroh
building IIUM Repository
collection Online Access
description This research aims to analyze the role of zakat distribution program specifically in eradicating poverty and reducing income inequality among groups in urban and rural areas. The research takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (abbreviated as BAZNAS) as the coordinating zakat institution in Indonesia, in five different cities and regencies in West Java Province namely, Bogor, Depok and Sukabumi. The analytical tools used in the study are the modification of the Center of Islamic Business and Economic Studies (abbreviated as CIBEST) model that assesses poverty from material and spiritual perspectives as well as CHAID analysis to see which variables are statistically significant in influencing the change in income and spiritual condition of the respondents. In addition, Deciles method and Gini coefficient are also employed to measure the effect of zakat on income inequality reduction among zakat beneficiaries under consideration. This study suggests that the present zakat distribution programs conducted by BAZNAS can significantly alleviate poverty and reduce income inequality among zakat beneficiaries. It is also found that spiritual supervision and routine assistance form BAZNAS officers, informal education, family size, age and job of the respondents are the variables that are statistically significant in influencing the increase of the households’ income and spirituality. This study is expected to exhibit how zakat can benefit the economy of a country. The study is also expected to provide some policy recommendations for the government to optimize the role of zakat in the development process.
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language English
English
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spelling iium-714562020-11-16T01:54:50Z http://irep.iium.edu.my/71456/ The role of zakat for poverty alleviation and income inequality reduction Ayuniyyah, Qurroh Pramanik, Ataul Huq Md Saad, Norma Ariffin, Muhammad Irwan BPH531 Zakat HB126.4 Islamic Economics This research aims to analyze the role of zakat distribution program specifically in eradicating poverty and reducing income inequality among groups in urban and rural areas. The research takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (abbreviated as BAZNAS) as the coordinating zakat institution in Indonesia, in five different cities and regencies in West Java Province namely, Bogor, Depok and Sukabumi. The analytical tools used in the study are the modification of the Center of Islamic Business and Economic Studies (abbreviated as CIBEST) model that assesses poverty from material and spiritual perspectives as well as CHAID analysis to see which variables are statistically significant in influencing the change in income and spiritual condition of the respondents. In addition, Deciles method and Gini coefficient are also employed to measure the effect of zakat on income inequality reduction among zakat beneficiaries under consideration. This study suggests that the present zakat distribution programs conducted by BAZNAS can significantly alleviate poverty and reduce income inequality among zakat beneficiaries. It is also found that spiritual supervision and routine assistance form BAZNAS officers, informal education, family size, age and job of the respondents are the variables that are statistically significant in influencing the increase of the households’ income and spirituality. This study is expected to exhibit how zakat can benefit the economy of a country. The study is also expected to provide some policy recommendations for the government to optimize the role of zakat in the development process. 2017-11 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/71456/2/37277.pdf application/pdf en http://irep.iium.edu.my/71456/9/71456%20The%20Role%20of%20Zakat%20for%20Poverty%20Alleviation%20and%20Income%20Inequality%20Reduction.pdf Ayuniyyah, Qurroh and Pramanik, Ataul Huq and Md Saad, Norma and Ariffin, Muhammad Irwan (2017) The role of zakat for poverty alleviation and income inequality reduction. In: 3rd International Islamic Monetary Economics and Finance Conference (IIMEFC), 8th-9th November 2017, Surabaya East Java, Indonesia.. (Unpublished)
spellingShingle BPH531 Zakat
HB126.4 Islamic Economics
Ayuniyyah, Qurroh
Pramanik, Ataul Huq
Md Saad, Norma
Ariffin, Muhammad Irwan
The role of zakat for poverty alleviation and income inequality reduction
title The role of zakat for poverty alleviation and income inequality reduction
title_full The role of zakat for poverty alleviation and income inequality reduction
title_fullStr The role of zakat for poverty alleviation and income inequality reduction
title_full_unstemmed The role of zakat for poverty alleviation and income inequality reduction
title_short The role of zakat for poverty alleviation and income inequality reduction
title_sort role of zakat for poverty alleviation and income inequality reduction
topic BPH531 Zakat
HB126.4 Islamic Economics
url http://irep.iium.edu.my/71456/
http://irep.iium.edu.my/71456/2/37277.pdf
http://irep.iium.edu.my/71456/9/71456%20The%20Role%20of%20Zakat%20for%20Poverty%20Alleviation%20and%20Income%20Inequality%20Reduction.pdf