ANALYSIS OF INCOME INEQUALITY IN JAVA ISLAND AND ITS INFLUENCING FACTORS IN 2012-2023

Diah Tri Agustina

Abstract


This study aims to analyze the effect of Economic Growth (GRDP), Human Development Index (HDI), and Unemployment on Income Inequality in Java during the period 2012-2023. The data used in this study are secondary data obtained from the Central Bureau of Statistics (BPS). This research uses panel data regression model with Random Effect Model (REM) approach and analyzed using Eviews12 software. The regression analysis results show that partially the variables of Economic Growth, HDI, and Unemployment have a positive and significant effect on income inequality in Java Island in 2012-2023. The simultaneous test results show that the variables of economic growth, HDI, and Unemployment have a positive and significant influence on income inequality in Java Island in 2012-2023. From the results of this study, it is expected that the government can provide appropriate policies so that the policies implemented can be realized and the government is also expected to be able to create jobs, improve the quality of education and training to reduce the level of income inequality.

Keywords


Human Development Index (HDI), Income Inequality, Unemployment, Economic Growth

Full Text:

PDF

References


Abdulah, R. (2013). Factors Affecting Income Inequality in Central Java. JEJAK: Journal of Economics and Policy,6 (1), 42-53. https://doi.org/10.15294/jejak.v6i1.3747

Al Aqilah, M. R., Muchtar, M., & Robinson Sihombing, P. (2024). Analysis of Determinants of Income Inequality in Sumatra Island. Journal of Law, Administration, and Social Science,4 (1), 13-24. https://doi.org/10.54957/jolas.v4i1.684

Amali, F. N., & Syafri. (2023). Analysis of Factors Affecting Inequality in 33 Provinces in Indonesia. Trisakti Economic Journal,3 (1), 815-820. https://doi.org/10.25105/jet.v3i1.15424

Ariesta, L. C. O. W., Jamzani Sodik, & Didi Nuryadin. (2022). Determinants of District/City Income Distribution Inequality and Spatial Linkages. SIBATIK JOURNAL: Scientific Journal of Social, Economic, Cultural, Technology, and Education,1 (5), 737-754. https://doi.org/10.54443/sibatik.v1i5.79

Asmaiyah, N., & Nugroho, R. Y. Y. (2022). The Role of Financial Sector Development on Income Inequality in Indonesia in 2011-2019. Journal of Applied Business and Economic (JABE) Vol. 8 No. 3 (March 2022) 366-375,8 (3), 366-375. https://doi.org/10.30998/jabe.v8i3.9594

Central Bureau of Statistics. (2024a). [New Method] Human Development Index by Province, 2022-2023. https://www.bps.go.id/id/statistics-table/2/NDk0IzI=/-metode-baru-indeks-pembangunan-manusia-menurut-provinsi.html

Central Bureau of Statistics. (2024b). [2010 Series] Growth Rate of Gross Regional Domestic Product at 2010 Constant Prices by Province (Percent), 2022-2023. https://www.bps.go.id/id/statistics-table/2/MjkxIzI=/-seri-2010--laju-pertumbuhan-produk-domestik-regional-bruto-atas-dasar-harga-konstan-2010--menurut-provinsi.html

Central Bureau of Statistics. (2024c). Gini Ratio by Province and Region, 2024. https://www.bps.go.id/id/statistics-table/2/OTgjMg==/gini-rasio--maret-2023.html

Central Bureau of Statistics. (2024d). Open Unemployment Rate by Province (Percent), 2024. https://www.bps.go.id/id/statistics-table/2/NTQzIzI=/tingkat-pengangguran-terbuka--februari-2024.html

Dwi Dernasari. (2020). Analysis of the Effect of Labor Productivity, Income Inequality, and Investment on Economic Growth in Indonesia for the Period 2009-2018. JII: Journal of Islamic Investment, Vol. 5 No., 93-110. https://doi.org/10.32505/jii.v5i2.1907

Ersad, M. E., Amir, A., & Zulgani, Z. (2022). The impact of HDI, unemployment rate and poverty rate on income inequality in Southern Sumatra. Journal of Paradigm Economics,17 (2), 425-438. https://doi.org/10.22437/jpe.v17i2.15614

Febriyani, A., & Ali Anis. (2021). The Effect of Economic Growth, Investment and Human Development Index on Income Distribution Inequality in Indonesia. JKEP: Journal of Economic and Development Studies,3 , 375-375. https://doi.org/10.1007/978-3-319-95714-2_300111

Gordón, I. G., & Resosudarmo, B. P. (2019). A sectoral growth-income inequality nexus in Indonesia. Regional Science Policy and Practice,11 (1), 123-139. https://doi.org/10.1111/rsp3.12125

Hindun, H., Soejoto, A., & Hariyati, H. (2019). The Effect of Education, Unemployment, and Poverty on Income Inequality in Indonesia. Journal of Business Economics and Entrepreneurship,8 (3), 250-265. https://doi.org/10.26418/jebik.v8i3.34721

Indra Putra, R. F., & Lisna, V. (2020). The Poverty-Growth-Inequality Triangle (Pgi Triangle): Financial Development, Human Development, and Income Inequality in Asia. Journal of Economics and Development,28 (2), 77-89. https://doi.org/10.14203/jep.28.2.2020.77-89

Kessy, D. P., Romadhoni, D. R., Maksum, F. A., & Azizahiv, L. N. (2021). Analysis of the Dynamic Relationship between Economic Growth and Income Inequality in Indonesia Using Clustering and Econometric Models. Journal of MSA (Mathematics and Statistics and Its Applications),9 (1), 111-118. https://doi.org/10.24252/msa.v9i1.18548

Khoirudin, R., & Musta'in, J. L. (2020). Analysis of Determinants of Income Inequality in the Special Region of Yogyakarta. Tirtayasa Ekonomika,15 (1), 17-30. https://doi.org/10.35448/jte.v15i1.6407

Nabila, & Laut. (2021). Determinants of Income Inequality in D.I. Yogyakarta Province in 2012-2020. Syntax Idea,3 (p-ISSN: 2684-6853 e-ISSN: 2684-883X), 1875-1888. https://doi.org/https://doi.org/10.36418/syntax-idea.v6i8.1410

Pradnyadewi, D., & Purbadharmaja, I. (2017). The Effect of HDI, Infrastructure Cost, Investment and Economic Growth on Income Distribution Inequality in Bali Province. E-Journal of Development Economics, Udayana University,6 (2), 255-285. https://jurnal.harianregional.com/eep/full-27275

Prastiwi, D. H., Laut, L. T., & Destiningsih, R. (2019). ANALYSIS OF FACTORS AFFECTING INCOME INEQUALITY IN JAVA ISLAND IN 2014-2018. DINAMIC: Directory Journal of Economic Volume,2 (1), 33-50. https://doi.org/10.57122/integral.v2i1.17

Putri, Y. E., & Erita, E. (2019). Analysis of Economic Growth and Income Inequality, Panel Data of Six Provinces in Java Island. Journal of Economic Education Innovation,9 (1), 27-33. https://doi.org/10.24036/011041740

Sugiyono. (2021). Quantitative, qualitative, and R&D research methods / Sugiyono (2021st ed.). Bandung: Alfabeta, 2021 ©2021.

Vadila, Y., & Resosudarmo, B. P. (2020). Tariff reform and income inequality in Indonesia. Regional Science Policy and Practice,12 (3), 455-475. https://doi.org/10.1111/rsp3.12253

Widyastuti, & Indrawati, L. R. (2021). Analysis of Determinants of Income Inequality in West Java Province 2015-2020. Journal of Development Economics,10 (2), 95-104. https://doi.org/10.23960/jep.v10i2.268

Wulandari, D. F., & Rahmawati, F. (2022). The Effect of Government Expenditure, Human Development, and Labor on Indonesia's Income Inequality. Economics, Finance, Investment and Sharia (EKUITAS),3 (3), 583-590. https://doi.org/10.47065/ekuitas.v3i3.1216

Yusica, L. V., Nazaruddin, M., & Arifin, Z. (2018). Analysis of the Effect of Economic Growth, Agglomeration and Unemployment Rate on Interregional Inequality of Districts and Cities in East Kalimantan Province. Jurna Ilmu Ekonomi,2 (2), 230-240. https://doi.org/https://doi.org/10.22219/jie.v2i2.6982




DOI: https://doi.org/10.21107/mediatrend.v20i1.28653



Copyright (c) 2025 Media Trend

Creative Commons License

Mediatrend © 2015 - Journal of Economic & Development Studies | Development Economics Program - Faculty of Economics and Bussiness, Trunojoyo University
DESKRIPSI GAMBAR DESKRIPSI GAMBAR