The Impact of Social Variables on Income Inequality Distric/Municipalities of West Java Province

Gabriela Neda Nifili Lafau, Inayati Nuraini Dwiputri

Abstract


Abstract: Economic development aims to improve the quality of life for all people. Equitable distribution of the benefits of growth is essential. Social variables can support development but can also cause inequality. This study examines the effect of population, health, education, human development, urbanization, per capita income, wages, and unemployment on income inequality in West Java. Using panel data regression on BPS 2018-2022 data, this study found that urbanization significantly affects income inequality. This suggests that high urbanization influences the high level of inequality in West Java due to differences in wages and employment opportunities between urban and rural areas.

Keywords: Economic Development; Income Inequality; Social Variable

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