Analysis Of Indonesia Inequality Income Distribution
Fakhruddin (a*), Raudhatil Wirda. Z (b), Muhammad Ilhamsyah Siregar(c), Fitriyani(d)
a. Economics Development Department, Faculty of Economics and Business Syiah Kuala University Banda Aceh, Indonesia
* fakhruddin[at]unsyiah.ac.id
b. Economics Development Department, Faculty of Economics and Business Syiah Kuala University Banda Aceh, Indonesia
c. Economics Development Department, Faculty of Economics and Business Syiah Kuala University Banda Aceh, Indonesia
d. Economics Development Department, Faculty of Economics and Business Syiah Kuala University Banda Aceh, Indonesia
Abstract
Inequality in income distribution and inflation has long been a discussion in economics, see Thalassino, Ugurlu, & Muratoğlu (2012) who examine income equality and inflation in the EU. Albanesi, Stefania (2007) examines the relationship between inflation and Inequality. Other researchers sought to see the relationship of inequality with various other variables. see Monnin (2014) which examines Inflation and Income Quality in Developed economies and Li and Zou (2002) which examine Inflation, Growth, and Income Distribution. Indonesia with a wide and diverse characteristic of an archipelago faces the challenge of the equitable income distribution. Indonesias economic growth has so far been concentrated in certain regions, causing an imbalance in income distribution. Methodology The model that will be used is the ARDL Panel model using data for the period 2012 - 2018 from 33 provinces in Indonesia. Potential of important findings Some important findings from this study are the relationship between inflation and income inequality in Indonesia. The higher the inflation, the more unequal the income distribution. Economic growth will reduce inequality while the increase in the number of unemployed and poor people will cause greater inequality.
Keywords: Inequality, inflation, poverty, unemployment, growth, ARDL
Topic: Economics