Determinants of Income Inequality Among Districts/Cities in East Java Province for the Period 2019-2021

Firstansyah Ananda Khoiri Fadhly, Maulidyah Indira Hasmarini

Abstract


This study aims to analyze the effect of economic growth, human development index, average years of schooling, and open unemployment rate on income inequality between districts / cities in East Java Province during the 2019-2021 period using panel data regression analysis. The results showed that the selected estimated model was the Fixed Effects Model (FEM). The results of the cross section validity test (t test) show that the variables of Economic Growth and Average Years of Schooling have a significant effect on income inequality. Meanwhile, the human development index and the open unemployment rate have no significant effect on income inequality in East Java during the 2019-2021 period. Based on the model existence test (F test), the estimated model exists, with a coefficient of determination (R2 ) of 0.7297; which means that 72.98% of the variation in the income inequality variable can be explained by the variation in the variables of economic growth, human development index, average years of schooling, and open unemployment rate. While the remaining 27.02% is influenced by variations in other variables outside the model.

Keywords


Income Inequality, Determinants

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.218

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