Determinant of Income Inequality in Eastern Indonesia

Nur Amalia Malik (), Fatmawati Fatmawati and Muhammad Jibril Tajibu
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Nur Amalia Malik: Hasanuddin University
Fatmawati Fatmawati: Hasanuddin University
Muhammad Jibril Tajibu: Hasanuddin University

A chapter in Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), 2025, pp 3248-3257 from Springer

Abstract: Abstract This research aims to identify and analyze the factors that influence income inequality in Eastern Indonesia, which often lags behind Western Indonesia. Income inequality is a serious problem that hinders equitable and sustainable economic development. In this context, this study explores the role of population, education, and labor productivity variables as the main determinants of income inequality. The method used is a quantitative approach with panel data analysis covering 13 provinces in Eastern Indonesia over the period 2009 to 2023. The regression analysis shows that education and labor productivity have a significant effect on reducing income inequality, while population does not show a significant effect. This finding indicates that improving the quality of education and labor productivity is crucial in reducing income inequality, and government policies should focus on improving access to and quality of education and training to increase productivity. This study concludes that although income inequality is difficult to eliminate completely, efforts to reduce it can be made through more equitable improvements in education and productivity.

Keywords: Income Inequality; Population; Education; Labor Productivity (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-758-8_271

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DOI: 10.2991/978-94-6463-758-8_271

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