Analysis of the Effect of Population, Average Years of Schooling, and Per Capita Expenditure on Income Inequality among 14 Regencies/Cities in Kalimantan Barat Province

Abstrak

In the implementation of economic development, Indonesia as a developing country is faced with complex problems in the process of economic development that is being carried out, namely the problem of income inequality among regions. In Kalimantan Barat Province itself, regional economic development still needs special attention, in order to narrow the opportunity for regional income inequality to occur. Raising the standard of living for the populace is an important part of economic development. Improvements from social, educational and economic aspects must be made. In this study, data variables representing these aspects will be used, namely population, average years of schooling, and per capita expenditure, which will then be used panel data regression analysis as an identification tool with the best estimation modeling to determine the effect of these variables on the Gini Ratio index as a measuring variable of income distribution inequality among 14 regencies/cities in Kalimantan Barat Province from 2012 to 2023. Panel data regression was employed as an analytical tool in this research utilizing the Fixed Effect Model (FEM), as the best estimation modeling. From the analysis conducted, the results indicated that the Gini Ratio index had a significant relationship with population. Meanwhile, the average years of schooling and per capita expenditure have a relationship but not significant to the Gini Ratio index or to the level of income inequality in Kalimantan Barat Province.