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Faktor-Faktor Yang Memengaruhi Ketimpangan Pendapatan Di Jawa Tengah
[Inequality Determination in Central Java, Indonesia]

Author

Listed:
  • Rusli Abdulah, Rusli

Abstract

The attention of economist to the problem of inequality is weak. This condition is followed by the world institution (World Bank and UNDP) which concerns in the areas of poverty, as well as our government. The impact of biased policy between poverty and inequality reduction can be seen from the data. In Indonesia, especially Central Java, during the period of 2002 to 2011, economic growth in Central Java increased accompanied by poverty reduction. However inequality increased. The purpose of the study is to analyze the determinant of inequality income in Central Java from 2002 up to 2011. Panel data regression method is used to achieve the objectives of this study. There are 35 cross section data represent every regency and 10-years data series. F test and Hausman test indicate that restricted random effect models are best for analysis. The result shows that there are only two significant variables that determine inequality (share of economic output received by employers wages). Meanwhile, the other two variables are not significant (urbanization and dependency ratio).

Suggested Citation

  • Rusli Abdulah, Rusli, 2013. "Faktor-Faktor Yang Memengaruhi Ketimpangan Pendapatan Di Jawa Tengah [Inequality Determination in Central Java, Indonesia]," MPRA Paper 77956, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:77956
    as

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    File URL: https://mpra.ub.uni-muenchen.de/77956/1/4839
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    References listed on IDEAS

    as
    1. Frances Stewart, 2003. "Income distribution and development," Chapters, in: John Toye (ed.), Trade and Development, chapter 10, Edward Elgar Publishing.
    2. Francisco H. G. Ferreira & Jérémie Gignoux, 2011. "The Measurement Of Inequality Of Opportunity: Theory And An Application To Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 622-657, December.
    3. Sherif Khalifa & Sherine El Hag, 2010. "Income Disparities, Economic Growth, And Development As A Threshold," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(2), pages 23-36, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inequality; Panel Data; Random Effect;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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