Factors Affecting Income Distribution Inequality

Abstract

Uneven income distribution is a problem that affects many nations throughout the world, including Indonesia, and if it is not remedied right away, the process of economic progress will be slowed. This study examines the relationship between the growth of the agricultural sector, the human development index, the labor force participation rate, and inflation in West Sumatra Province from 2007 to 2022. The Central Bureau of Statistics (BPS) of West Sumatra Province provided secondary data that were utilised in this study's quantitative methodology. Multiple linear regression is the technique used, and data processing application analytic tools are used. The results of the regression analysis reveal that while the HDI, TPAK, and inflation variables have a significant and adverse impact on income distribution inequality, the agricultural sector development variables, as measured by agricultural sector GRDP data, have a significant and positive impact. Additionally, the findings of this study demonstrate that, from 2007 to 2022, the agriculture sector development variables of HDI, TPAK, and inflation collectively (simultaneously) have a significant impact on income distribution inequality in West Sumatra Province.