Income inequality across provinces in Indonesia: An empirical analysis of human development, economic performance, and labor market conditions

Al Bina; Leni Kurnia Optari; Heni Widiya

doi:10.55942/pssj.v5i6.617

Authors

Al Bina Universitas Asahan
Leni Kurnia Optari Universitas Asahan
Heni Widiya Universitas Asahan

DOI:

https://doi.org/10.55942/pssj.v5i6.617

Keywords:

Income inequality, Human Development Index, economic growth, unemployment, panel data

Abstract

Income inequality is one of the structural challenges faced by many countries, including Indonesia. This phenomenon reflects an unequal distribution of income across regions, which can lead to social injustice and hinder the process of economic development. This study aims to analyze the effects of the Human Development Index (HDI), economic growth, and unemployment rates on income inequality across 34 provinces in Indonesia over the period 2019–2024. The method employed is panel data regression analysis. The findings reveal that the unemployment rate has a positive and significant effect on income inequality. The HDI shows a significant negative effect, while economic growth does not exhibit a statistically significant impact. These findings highlight the importance of policies that prioritize job creation and human development in addressing inequality. Economic growth strategies should also be designed to be more inclusive.

Author Biographies

Al Bina, Universitas Asahan

Al Bina is a lecturer at the Management Department, Universitas Asahan, Sumatera Utara. His research interests include regional economic development, income distribution, and public policy. He has actively engaged in academic and applied research projects focused on sustainable and inclusive growth in Indonesia.

Leni Kurnia Optari, Universitas Asahan

Leni Kurnia Optari is a researcher and academic at the Management Department, Universitas Asahan. Her areas of expertise include quantitative economics, labor market studies, and social welfare analysis. She frequently collaborates on projects involving statistical modeling and regional development.

Heni Widiya, Universitas Asahan

Heni Widiya is affiliated with the Management Department at Universitas Asahan. Her academic work focuses on human development, education policy, and gender equality in economic participation. She is passionate about improving development outcomes through inclusive policy-making and academic contributions.

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