Pengaruh Produk Domestik Regional Bruto Sektoral, Inflasi, dan Pertumbuhan Ekonomi Terhadap Ketimpangan Pendapatan di Pulau Jawa

Abstract

One of the problems in developing countries is income inequality. Java Island as the center of economic mobility has a different economic structure in each province with the acquisition of the resulting sectoral Gross Regional Domestic Product. This study aims to determine the effect of primary sector GRDP, secondary sector GRDP, tertiary sector GRDP, inflation, and economic growth on income inequality in Java Island for the period 2015-2022. This research uses a quantitative approach with saturated sample technique and uses cross section data of six provinces in Java Island. The data analysis technique used is panel data regression with the Fixed Effect Model (FEM) model.  The results of this study indicate that secondary sector GRDP has a negative and significant influence on income inequality. This shows that an increase in secondary sector GRDP can reduce income inequality in Java Island. Inflation has a positive and significant effect on income inequality, which means that an increase in inflation can worsen income inequality. while primary sector GRDP, tertiary sector GRDP, and economic growth have no significant effect on income inequality in the 2015-2022 period in Java Island.