Income Inequality in Indonesia: Which Aspects Cause The Most?
Introduction/Main Objectives: This study discusses the three main aspects of inequality: the level of education attained, urban-rural area, and gender. Background Problems: Inequality is one of the fundamental economic problems in Indonesia that has the potential to cause the non-optimal distributio...
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| Format: | Article |
| Language: | English |
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Universitas Gadjah Mada, Fakultas Ekonomika dan Bisnis
2022
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| Online Access: | https://repository.ugm.ac.id/278822/1/Sulistyaningrum_EB.pdf |
| _version_ | 1797037366143090688 |
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| author | Sulistyaningrum, Eny Tjahjadi, Alexander Michael |
| author_facet | Sulistyaningrum, Eny Tjahjadi, Alexander Michael |
| author_sort | Sulistyaningrum, Eny |
| collection | UGM |
| description | Introduction/Main Objectives: This study discusses the three main aspects of inequality: the level of education attained, urban-rural area, and gender. Background Problems: Inequality is one of the fundamental economic problems in Indonesia that has the potential to cause the non-optimal distribution of resources, economic instability, and may even lead to an economic crisis. Novelty: This study provide a new perspective on the differences in findings for the aspects of gender, education, and geographic factors on income inequality Research Methods: This study uses the Theil index for decomposition analysis and quantile regression analysis to analyze each class of income, particularly in the context of income inequality factors. Finding/Results: The findings show that, male workers in the lower class have a greater income than female workers. In addition, workers with an elementary school level experience higher inequality than workers with other levels of education do. Moreover, higher inequality occurs for urban workers in both the upper and lower classes, compared to workers in rural areas. From quantile regression analysis, the results show that, income inequality between men and women is reducing. The number of completed years has less influence compared to that in earlier periods, because more and more people enter education to increase their income.
Lastly, urban workers have different incomes from rural workers, though the gap is reducing. It means both urban and rural workers have greater opportunities to earn a better income. Conclusion: Gender plays an important role in income inequality. The length of education has constantly affected income inequality as well. In the context of the area, urban workers normally have higher incomes. |
| first_indexed | 2024-03-14T00:02:14Z |
| format | Article |
| id | oai:generic.eprints.org:278822 |
| institution | Universiti Gadjah Mada |
| language | English |
| last_indexed | 2024-03-14T00:02:14Z |
| publishDate | 2022 |
| publisher | Universitas Gadjah Mada, Fakultas Ekonomika dan Bisnis |
| record_format | dspace |
| spelling | oai:generic.eprints.org:2788222023-11-02T00:23:15Z https://repository.ugm.ac.id/278822/ Income Inequality in Indonesia: Which Aspects Cause The Most? Sulistyaningrum, Eny Tjahjadi, Alexander Michael Economics and Business Introduction/Main Objectives: This study discusses the three main aspects of inequality: the level of education attained, urban-rural area, and gender. Background Problems: Inequality is one of the fundamental economic problems in Indonesia that has the potential to cause the non-optimal distribution of resources, economic instability, and may even lead to an economic crisis. Novelty: This study provide a new perspective on the differences in findings for the aspects of gender, education, and geographic factors on income inequality Research Methods: This study uses the Theil index for decomposition analysis and quantile regression analysis to analyze each class of income, particularly in the context of income inequality factors. Finding/Results: The findings show that, male workers in the lower class have a greater income than female workers. In addition, workers with an elementary school level experience higher inequality than workers with other levels of education do. Moreover, higher inequality occurs for urban workers in both the upper and lower classes, compared to workers in rural areas. From quantile regression analysis, the results show that, income inequality between men and women is reducing. The number of completed years has less influence compared to that in earlier periods, because more and more people enter education to increase their income. Lastly, urban workers have different incomes from rural workers, though the gap is reducing. It means both urban and rural workers have greater opportunities to earn a better income. Conclusion: Gender plays an important role in income inequality. The length of education has constantly affected income inequality as well. In the context of the area, urban workers normally have higher incomes. Universitas Gadjah Mada, Fakultas Ekonomika dan Bisnis 2022-09-27 Article PeerReviewed application/pdf en https://repository.ugm.ac.id/278822/1/Sulistyaningrum_EB.pdf Sulistyaningrum, Eny and Tjahjadi, Alexander Michael (2022) Income Inequality in Indonesia: Which Aspects Cause The Most? Journal of Indonesian Economy and Business, 37 (3). pp. 229-253. ISSN 2085-8272 https://journal.ugm.ac.id/v3/jieb https://doi.org/10.22146/jieb.v37i3.2015 |
| spellingShingle | Economics and Business Sulistyaningrum, Eny Tjahjadi, Alexander Michael Income Inequality in Indonesia: Which Aspects Cause The Most? |
| title | Income Inequality in Indonesia: Which Aspects Cause The Most? |
| title_full | Income Inequality in Indonesia: Which Aspects Cause The Most? |
| title_fullStr | Income Inequality in Indonesia: Which Aspects Cause The Most? |
| title_full_unstemmed | Income Inequality in Indonesia: Which Aspects Cause The Most? |
| title_short | Income Inequality in Indonesia: Which Aspects Cause The Most? |
| title_sort | income inequality in indonesia which aspects cause the most |
| topic | Economics and Business |
| url | https://repository.ugm.ac.id/278822/1/Sulistyaningrum_EB.pdf |
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