Determinants of Income Inequality in Yogyakarta Province

Yuliani, Rizka; Rahman, Yozi Aulia; Nuraini, Dini; Khotimah, Khusnul

doi:10.2991/aebmr.k.210220.053

Cited by 3 publications

(4 citation statements)

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“…This shows that there is an inverse relationship between GRDP per capita and the Gini ratio, which means that the higher the GRDP per capita level of society in a province has an impact on reducing the Gini ratio in that province. These findings are supported by previous research conducted by Saputri, (2017); Ha et al (2019); Untari, Priyarsono, & Novianti (2019);and Yuliani et al (2021) showed the results that GRDP per capita has a negative relationship with the level of income inequality in a region. Based on these findings, this study accepts the third hypothesis which stated that the level of GRDP per capita has a negative and significant relationship to the level of income inequality in Indonesia.…”

Section: Results Interpretationsupporting

confidence: 88%

“…The net economic value of an area resulting from economic activities over a certain period of time is known as the Gross Regional Domestic Product (GRDP) (Munandar & Wardoyo, 2015). Based on previous research by Saputri, (2017); Ha et al (2019); Untari, Priyarsono, & Novianti (2019); and Yuliani et al (2021) showed the results that GRDP per capita has a negative relationship and significantly impacts the level of income inequality in a region , which means that a higher level of GRDP per capita can contribute to reducing income inequality in that region. In contrast to these findings, Alamanda (2021) in her research stated that GDP growth has a positive correlation with the Gini Index, which means that the higher the economic growth in a region, the greater the income disparity that occurs between rich and poor people.…”

Section: Hypothesis Developmentmentioning

confidence: 92%

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Zakat and Income Inequality in Indonesia: Panel Data Analysis in 34 Provinces

Lestari

Auwalin

2022

JESTT

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ABSTRAK Tujuan utama dari makalah ini untuk menguji secara empiris pengaruh zakat, Produk Domestik Regional Bruto (PDRB) perkapita, Upah Minimum Regional/Provinsi (UMP), dan inflasi terhadap tingkat gini rasio di 34 provinsi di Indonesia selama tahun 2018-2020. Temuan penelitian ini menunjukkan bahwa distribusi zakat yang diproksikan dengan Indeks Kesejahteraan BAZNAS serta tingkat inflasi secara statistik tidak berpengaruh signifikan terhadap tingkat ketimpangan pendapatan di Indonesia. Sementara itu, tingkat PDRB perkapita dan UMP memiliki arah hubungan negatif dan berpengaruh signifikan secara statistik terhadap tingkat ketimpangan pendapatan di Indonesia. Penelitian ini memberikan rekomendasi kepada pengelola zakat untuk menciptakan dan mengembangkan program zakat yang mampu memberdayakan perekonomian mustahik sehingga mampu mengurangi tingkat kesenjangan pendapatan dalam masyarakat. Selain itu, seluruh pemangku kepentingan (stakeholders) harus bersinergi dalam upaya meningkatkan realisasi pengumpulan dana zakat di lembaga dengan melalui peningkatan literasi dan kesadaran masyarakat guna mengoptimalisasikan peran zakat dalam peningkatan kesejahteraan masyarakat. Kata kunci: Indeks Kesejahteraan BAZNAS, Ketimpangan Pendapatan, Makroekonomi, Zakat. ABSTRACT The main objective of this paper was to empirically examine the effect of zakat, Gross Regional Domestic Product (GRDP) percapita, Regional/Provincial Minimum Wage, and inflation on the gini ratio in 34 provinces in Indonesia during 2018-2020. The findings of this study indicate that the distribution of zakat, which is proxied by the BAZNAS Welfare Index, and the inflation rate has no statistically significant effect on the level of income inequality in Indonesia. Meanwhile, GRDP per capita and Regional/Provincial Minimum Wage levels have a negative and statistically significant relationship to the level of income inequality in Indonesia. In order to lessen the degree of income inequality in society, this study offers recommendations to zakat managers on how to design and develop zakat programs that can strengthen the mustahik's economy. In addition, all stakeholders must work together in an effort to increase the realization of zakat fund collection in institutions by increasing literacy and public awareness in order to maximize the contribution of zakat to raising the welfare of mankind. Keywords: Baznas Welfare Index, Income Inequality, Macroeconomics, Zakat. REFERENCES Abdelbaki, D. H. H. (2013). The impact of zakat on poverty and income inequality in Bahrain. Review of Integrative Business & Economics Reseacrh, 2(1), 133–154. Afandi, A., Rantung, V. P., & Marashdeh, H. (2017). Determinants of income inequality. 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Section: Results Interpretationsupporting

confidence: 88%

Section: Hypothesis Developmentmentioning

confidence: 92%

Zakat and Income Inequality in Indonesia: Panel Data Analysis in 34 Provinces

Lestari

Auwalin

2022

JESTT

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show abstract

“…The decline in the demand for labor will cause unemployment to increase and more people without an income, so income inequality is higher. As the neoclassical theory states that an increase in the minimum wage of workers will increase income inequality because a non-market will be instrumental in setting the minimum threshold in the labor market, so the demand for labor will decrease (Yuliani et al, 2021).…”

Section: Maurilla Suriani and Nasir Do Poverty And Economic Growth Ma...mentioning

confidence: 99%

“…The previous studies of Yogyakarta Province's income inequality found that economic growth did not have a significant effect on income inequality. It is caused by the unequal distribution of economic growth between the districts (Suryani & Woyanti, 2021;Yuliani, 2021). Yogyakarta district, which is the center of the economy, tends to have higher economic growth.…”

Section: Maurilla Suriani and Nasir Do Poverty And Economic Growth Ma...mentioning

confidence: 99%

Do Poverty and Economic Growth Matter for Income Inequality Reduction in Yogyakarta Province?

Maurilla

Suriani

Nasir

2023

JESP

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It has been observed that income inequality is an economic element that may impede a nation's economic development. In general, Indonesia's Gini ratio has remained low for nearly a decade, although one region, Yogyakarta Province, unexpectedly exceeds the national average. The provincial government of Yogyakarta must focus more on reducing income inequality. Therefore, this study employs the Poverty-Growth-Inequality Triangle model approach to investigate the complexity of income inequality in Yogyakarta Province. The data is collected from five cities in Yogyakarta Province from 2010 to 2021. For the quantitative study, a Simultaneous Equation Model analysis with three iterations of least squares is performed. The results indicate that there is no causal relationship between income inequality and economic growth or poverty. According to the model of income inequality, education and the district minimum wage have a significant impact on income inequality. Therefore, local governments are advocated to evaluate policies aimed at reducing income inequality through education system reform, equity in district minimum wage and economic growth, and efficiency in the utilization of income inequality-related funds.

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The Effect of HDI, Open Unemployment Rate, and Poverty on Income Disparity in Riau Islands Province in 2011-2022

Hutabarat,

Arka

2023

JSE

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Income disparity needs to be addressed so that the level of disparity can be low and controlled so that it can implement development policies properly and improve the welfare of the community. This research aims to analyze the effect of the HDI, Open Unemployment Rate, and Poverty on Income Disparity in Riau Islands Province in 2011-2022. The development of the HDI, Open Unemployment Rate, Poverty and Income Disparity in Riau Islands Province fluctuated considerably during 2011- 2022. This research used panel data from 7 regencies/cities and 1 province from 2011-2022. The results of this research explain that the HDI, Open Unemployment Rate, and Poverty simultaneously have a significant effect on Income Disparity in Riau Islands Province. HDI has a negative and partially significant effect on Income Disparity in Riau Islands Province. Open Unemployment Rate and Poverty have no partial effect on Income Disparity in Riau Islands Province.

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Determinants of Income Inequality in Yogyakarta Province

Cited by 3 publications

References 3 publications

Zakat and Income Inequality in Indonesia: Panel Data Analysis in 34 Provinces

Zakat and Income Inequality in Indonesia: Panel Data Analysis in 34 Provinces

Do Poverty and Economic Growth Matter for Income Inequality Reduction in Yogyakarta Province?

The Effect of HDI, Open Unemployment Rate, and Poverty on Income Disparity in Riau Islands Province in 2011-2022

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