dc.description.abstract | Indonesia, as an archipelagic nation with diverse geographical and economic
characteristics, faces significant challenges in regional income distribution
inequality. Although there has been a positive trend in development, the distribution
of its benefits has not been fully equitable. Factors such as per capita income,
education quality, and unemployment rates are crucial determinants in the
dynamics of this inequality.
The objective of this research is to analyze the differences in the performance
of GRDP per capita and inequality across 34 provinces before and after COVID 19, and to examine the influence of per capita income, education, and
unemployment on income distribution inequality in Indonesia during the 2015–
2024 period. This study employs a descriptive quantitative research design,
utilizing secondary panel data. The analytical methods include panel data
regression, supported by Eviews 12 software, and Importance-Performance
Analysis (IPA) for quadrant mapping.
The findings of this study indicate that: 1) Per capita income has a negative
and significant effect on income distribution inequality in Indonesia, suggesting
that inclusive economic growth can reduce disparities. 2) Education (average years
of schooling) has a negative and significant effect on income distribution inequality
in Indonesia, demonstrating the vital role of human capital quality improvement in
promoting equity. 3) The unemployment rate does not have a statistically significant
effect on income distribution inequality in Indonesia, although the coefficient's
direction is positive, which might be attributed to the dominance of the informal
sector and the role of social protection programs. 4) The IPA quadrant analysis
reveals shifts in provincial positions pre- and post-COVID-19, reflecting the
regional dynamics of inequality and economic performance, with some provinces
like Central Sulawesi successfully achieving the "Ideal Inclusive Growth" quadrant. | en_US |