Abdulrahman Taresh Abdullah A. and Dyah Wulan Sari, Ph.D. and Rudi Purwono, Dr (2021) Analysis of the relationship between income inequality and social variables: Evidence from Indonesia. Economics and Sociology, 14 (1). pp. 103-119. ISSN 2071-789X, 2306-3459

	Text (Artikel) Rudi P_ Artikel108_Analysis of the relationship.pdf Download (927kB)
	Text (Peer Review 1) Rudi Purwono_Peer Review108.pdf Download (1MB)
	Text (Similarity Test) Rudi P_ Similarity108.-ANALYSIS OF THE RELATIONSHIP.pdf Download (4MB)
	Text (Corresponding Author) Rudi Purwono_Korespondensi108_Analysis of the relationship.pdf Download (1MB)
	Text (Peer Review 2) Dyah Wulan Sari_PeerReview104.pdf Download (1MB)

Abstract

This study tries to analyse the relationship between income inequality and social variables to provide additional empirical input on the related structural model. To achieve these objectives, this study uses the co-integration and long-run structural vector auto-regression (SVAR) for the panel data on 33 provinces in Indonesia over the 2005-2018 period. The study concludes that income inequality has a positive impact on population growth, unemployment, and poor health, whereas it also has a negative effect on education, human development, and urbanisation growth. Population growth, unemployment, poor health and urbanisation growth can increase income inequality, while education and human development index reduce income inequality. Furthermore, increased minimum wages can reduce income inequality, poor health, and increase education and per capita income. This study also found that per capita income has a long-term relationship with income inequality and population.

Actions (login required)

View Item