Decomposition of Household Income Inequality in Bali Based on the Migration Status

Abstract

Purpose : The study aims to determine the decomposition of household income inequality in Bali based on the migration status using regression-based decomposition analysis.
 Theoretical framework: Alsina and Rodrick (1994) stated that hearing opinions will inhibit the growth process and will result in redistribution national income will be expensive. Other things Bourguignon (2004), stated that the worrying condition that occurred because relative presence of the population. Inequality in income occurs because of every normal observation with
 population mean, which makes the scale independent of income.
 Design/methodology/approach: The study uses consumption expenditure data from the National Socio-Economic Survey (SUSENAS), covering for more than 45,000 household, focusing on Bali province in 2018.
 Finding: In general, the result shows that the proportion of rural-urban difference is the main cause of the household inequality in Bali, consistently with the prediction that migration from rural to urban areas is a key source of inequality. Moreover, the results of the Blinder-Oaxaca regression-based decomposition show that the rural-urban difference, the marital status of the head of the household, the highest education of the head of the household, and the number of household members affect the inequality of household income in Bali for both migrants and non-migrants. Only gender of the head of the household has no significant effect on the inequality.
 Research, Pratical & Sosial Implications: Practically, this research will contribute finding decomposition of household income inequality