Income Inequality in East Java Province

DOI

10.2991/assehr.k.200529.012How to use a DOI?

Keywords

capital expenditure, per capita expenditure, open unemployment rate, Gini ratio

Abstract

Inequality of income in East Java is still considered high as indicated by the high value of the Gini ratio in most districts / cities. Local government capital expenditure is one of the triggers of the high disparity, in addition to the high per capita spending and open unemployment in East Java. Therefore, this study aims to analyse how influence the capital expenditure, per capita expenditure and unemployment rate have on inequality is implied in the Gini coefficient. Quantitative analysis, explanatory method with panel data. The panel data selection process with data normality test through the estimation of common effect, fixed effect or random effect model parameters and the selection of the right model using panel data regression model which is processed using e-views software 10. The results show the level of income inequality of each district / the city has a moderate stage gap. The Gini index of regency / city in East Java is quite volatile, the highest value is Madiun City, Malang City, Blitar City, and Pasuruan City. Capital expenditure and per capita expenditure have insignificant effect on the gini ratio, while the open unemployment rate partially influences the Gini ratio. Government capital expenditure is realized in the form of expenditure in the education sector, health sector expenditure, goods / services expenditure is no less important than infrastructure spending such as roads, bridges, airports, terminals, ports.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Nurul Laili Mauliddah
AU  - Asyidatur Rosmaniar
PY  - 2020
DA  - 2020/05/04
TI  - Income Inequality in East Java Province
BT  - Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)
PB  - Atlantis Press
SP  - 58
EP  - 61
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200529.012
DO  - 10.2991/assehr.k.200529.012
ID  - Mauliddah2020
ER  -