Institusion
Universitas Muhammadiyah Surakarta
Author
Rahmawati, Anggraini
, Yuni Prihadi Utomo, S.E., M.M
Subject
HB Economic Theory
Datestamp
2022-05-23 04:22:11
Abstract :
Income inequality can be interpreted as the difference in economic prosperity between the rich and
the poor, which can be seen from the differences in income that can trigger social jealousy in
various regions. This study aims to examine the factors that influence income inequality in East
Java Province for the period 2016 to 2019. The analytical method used in this study is panel data
regression analysis. The Cross Section data in this study covers 38 districts/cities in East Java
Province (i = 38), while the time series data is annual data, from 2016 to 2019 (t = 4). The results
showed that the Fixed Effect Model (FEM) was chosen as the best estimated model. Human
Development Index, Gross Regional Domestic Product and Population were found to have an
effect on Income Inequality. Meanwhile, Government Expenditure and Minimum Wage have no
effect on income inequality. Gross regional domestic product and population have a negative effect
on income inequality. Meanwhile, the Human Development Index has a positive effect on income
inequality