Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)

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Income Inequality in East Java

Authors
Nova Dwi Ise Aprelia1, Muhammad Arif1, *
1Faculty of Economics and Business, Universitas Muhammadiyah Surakarta, Surakarta, Indonesia
*Corresponding author. Email: arif@ums.ac.id
Corresponding Author
Muhammad Arif
Available Online 4 October 2023.
DOI
10.2991/978-94-6463-204-0_48How to use a DOI?
Keywords
Income Inequality; Regional Income; Purchasing Power Parity; Dependency Ratio; Construction Cost Index; Poverty
Abstract

The goal of this study is to determine the direction and strength of the relationship between local original income, purchasing power parity, dependency ratio, construction cost index, and the number of impoverished people, and how these variables relate to income inequality across all East Java province residences. In this study, 2017–2021 secondary data are used. The Central Statistics Agency (BPS), the Directorate General of Fiscal Balance, provided the information (DJPK, Ministry of Finance). Theil Entropy Index approach is the analytical technique used to compute income inequality, and panel data regression analysis is the estimate model. Income inequality is the dependent variable in this study, whereas local revenue, purchasing power parity, dependence ratio, construction cost index, and the number of impoverished people are the independent factors. The Random Effect Model (REM), one of the findings from the panel data regression analysis, was chosen as the best method to describe how independent variables affected dependent variables in this study. According to the influence validity test (t test), the variables regional original income, dependency ratio, and construction expensiveness index significantly affect income inequality in East Java province between 2017 and 2021, whereas the variables purchasing power parity and the number of impoverished people have no bearing on it.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)
Series
Advances in Economics, Business and Management Research
Publication Date
4 October 2023
ISBN
10.2991/978-94-6463-204-0_48
ISSN
2352-5428
DOI
10.2991/978-94-6463-204-0_48How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Nova Dwi Ise Aprelia
AU  - Muhammad Arif
PY  - 2023
DA  - 2023/10/04
TI  - Income Inequality in East Java
BT  - Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)
PB  - Atlantis Press
SP  - 563
EP  - 579
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-204-0_48
DO  - 10.2991/978-94-6463-204-0_48
ID  - Aprelia2023
ER  -