THE EFFECT OF ECONOMIC GROWTH, OPEN UNEMPLOYMENT, AND POVERTY RATE ON INCOME INEQUALITY IN INDONESIA
Keywords:
Economic Growth Unemployment Poverty Inequality IncomeAbstract
Income inequality in Indonesia reflects an unequal distribution of income among the population, commonly measured by the Gini ratio. This study aims to analyze the partial and simultaneous effects of economic growth, open unemployment, and poverty levels on income inequality in Indonesia during 2020–2024. This research employs a quantitative approach using panel data regression based on secondary data from the Central Bureau of Statistics (BPS) of Indonesia. The population consists of 38 provinces, with 8 provinces selected through purposive sampling. The Random Effect Model was identified as the best estimation model, and data analysis was conducted using EViews 13. The results show that economic growth, open unemployment, and poverty levels do not have a significant partial effect on income inequality in Indonesia. However, simultaneously, these variables have a significant effect on income inequality.
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