Disparity and Income Inequality in Indonesia

Abstract

Objective: This study aims to determine the effect of the labor force variable, road infrastructure province, life expectancy, average length of schooling and economic growth on disparities of the development in Indonesia and find out which variable is the most dominant effect on development disparities in 33 provinces in Indonesia. Methodology: This study uses quantitative research methods using panel data. This panel data regression model has three approaches that are often used in analyzing data. Result and Conclusion: the gap between regions with WI values in 33 provinces in Indonesia in the period of time 2010 to 2021 illustrates that the average level of disparity between provinces in 2012-2021 still experienced quite large inequality. based on each province it is illustrated that inequality that occurs in the province tends to decrease every year. Novelty: The novelty in this research The level of disparity between regions with the WI values at 33 Provinces in Indonesia in the period 2010 to 2021 illustrates that the level the average gap between provinces in 2010 to 2021 is still experiencing considerable inequality big. Based on the panel data regression results, there are three variables that affect the level of inequality between 33 provinces in Indonesia significantly.