Analysis of Determinants of Income Distribution Inequality in Indonesia

Abstract

This study aims to analyze the factors that influence income distribution inequality in Indonesia. The analysis method uses quantitative descriptive analysis with secondary data, the analysis tool uses panel data regression using cross-section data, The research objects are the Provinces in Indonesia, and time series data, namely 2915-2022 with a total number of observations of 272 objects, then using tests related to panel data regression,  the selection of chow test models, Hausman test,  and multiple Lagrange tests, as well as using statistical F hypothesis tests and statistical t and coefficients of determination. The results show that the poverty rate has a positive and significant effect on income distribution inequality in Indonesia, economic growth has a negative and significant effect on income distribution inequality in Indonesia, information and communication technology has a negative and significant effect on income distribution inequality in Indonesia, and investment has a positive and significant effect on income inequality in Indonesia. While the other two variables such as the human development index and unemployment rate do not affect the inequality of income distribution in Indonesia