What type of study is this?

This is a Panel Data Regression study.

September 10, 2025Open Access

Analysis of Factors Affecting Income Disparity in Indonesia

Key Points

Income disparity is strongly influenced by GDRP and the dependency ratio in Indonesia.
GRDP negatively impacts income disparity, whereas the dependency ratio shows a positive correlation.
Unemployment and education do not significantly affect income disparity across Indonesian provinces.
Government policies must focus on increasing GRDP and reducing the dependency ratio to address income inequality.

Abstract

This study analyzes the influence of GDRP, Unemployment, Dependency Ratio, and Education on income disparity in 14 provinces in Indonesia during 2012-2022. Using panel data regression in 14 provinces in Indonesia, the results of the study show that simultaneously all variables have a significant effect on income disparity. Partially, GRDP has a negative and significant effect on income disparity, Dependency ratio has a positive and significant effect on income disparity in Indonesia, while Unemployment and education have no significant effect. These results indicate the need for government policies to reduce income disparity through efforts to increase GRDP and reduce the Dependency ratio.

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Cite This Study

Lisyanti et al. (Thu,) studied this question.

synapsesocial.com/papers/68c1bd3254b1d3bfb60ee3b7 https://doi.org/https://doi.org/10.55927/ijbae.v4i4.218

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