Abstract

Inequality of income distribution is affected by the economic and non economic factors such as the Gross Domestic Product (GDP), population (POP), Unemployment Rate (TPT) and Degree of Fiscal Decentralization (DDF). This study aims to determine the effect of the GDP, population, unemployment rate and the degree of fiscal decentralization to the unequal distribution of income partially and simultaneously at the 5% significance level. The research data used in the form of data crossection in 6 provinces in Java with a data time series in 2009 - 2015. The data was processed with panel data analysis with fixed effect regression models. Based on the classic assumption test turns out normal distribution of data for Jarque Bera value greater than 5%, does not occur because the probability value results heteroskedastisitas regression residuals squared 0.9768 (greater than 5%), do not occur multikolinearitas, no autocorrelation for test DW 1 , 46375 and d count is greater than dU and 4 <- dU. The regression equation fixed effect model IG it = -8.723781 + 0.278708 Ln PDRBK it + 0.65660 Ln POP it + 0.013688 Ln TPK it + 0.000775 Ln DDF it + eit. Partially significant positive effect on income distribution is the GDP, population and the unemployment rate is open each probability value is less than 5% (0,000 < 5%; 0,014 < 5%, 0.0261 < 5%) Simultaneously all independent variables significant positive effect on inequality of income distribution because F probability value is less than 5% (0.0000 < 5%). The independent variables are able to explain the dependent variable only amounted to 78.59% while the remaining 21.41% influenced by other factors not included in the research model. Keywords: unequal distribution of income, domestic gross, population, unemployment rate open and the degree of fiscal decentralization.

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