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This is a Quantitative Study study (also classified as: Cohort Study).

October 17, 2025Open Access

Impact of Urbanization on Income Inequality in Indonesia

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This analysis shows urbanization does not significantly affect income inequality in Indonesia, suggesting the need for localized approaches.

Urbanization does not significantly impact national income inequality in Indonesia, highlighting local variations.
Panel data analysis from 33 provinces indicates that cross-dependencies are uneven and spatial polarization persists.
Spatial diagnostics reveal distinct clustering of regions, indicating policymakers must consider unique regional dynamics.
Descriptive statistics reveal a Gini coefficient range of ~0.23–0.45, underlying hidden heterogeneities in income distribution.

Sodik et al. (2025) studied this question.

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This analysis shows urbanization does not significantly affect income inequality in Indonesia, suggesting the need for localized approaches.