Abstract
This research focuses on examining the impact of changes in economic structure and assessing the effectiveness of government program initiatives on income inequality. Income inequality becomes the dependent variable, then the industrial sector GRDP ratio, service sector GRDP ratio, Smart Indonesia Program, Food Social Assistance and Provincial Minimum Wage become the independent variables. The empirical approach in this research involves analysis of panel data from 34 provinces in Indonesia during the 2018-2022 period, using data collected from the Central Statistics Agency and the Ministry of Education and Culture. The research method applied is the Fixed Effect Model (FEM). The findings of this research show that the industrial sector GRDP ratio variable and the Provincial Minimum Wage show a negative influence on income inequality. Meanwhile, other variables, including the GRDP ratio in the service sector, the Smart Indonesia Program, and Social Food Assistance, did not show a significant influence on income inequality.
Published Version
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