Title : Analysis of the Relationship between Income Inequality and Social Variables: Evidence from Indonesia
Authors:
- Abdulrahman Taresh A.
- Dyah Wulan Sari
- Rudi Purwono
Department : Economics
Journal Name : Economics and Sociology
Kinds of Journal : Q2
Keywords : income inequality, social variables, cointegration panels, Indonesia.
Abstract:
This study tries to analysh the relationship between income inequality and social variables to provide additiaational empirical input on the related structural models. To achieve these objectives, this study uses the cointegration 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, which it is also has a negative effect on education, human development, and urbanization growth. Population Growth, Unemployment, Poor Health and Urbanization Growth Can Income Income Inequality, While Education and Human Development Index Reduce Income Inequality. Furthermore, Increased Minimum Wages Cance 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.