ANALISIS PENGARUH PERTUMBUHAN EKONOMI, DERAJAT DESENTRALISASI FISKAL DAN TINGKAT PENGANGGURAN TERBUKA TERHADAP KETIMPANGAN PENDAPATAN DI PROVINSI DIY TAHUN 2010-2019

Abstract

Income inequality is a sizeable difference in income between people with high incomes and those with low incomes. In the last ten years income in Yogyakarta Province has always been higher than national income inequality. This study aims to analyze the effect of economic growth, degree of fiscal decentralization and open unemployment rate on income inequalty in Yogyakarta Province in 2010 - 2019. The type of data used in this study is secondary data sourced from the Central Agency Statistics (BPS) Yogyakarta Province and national BPS. The data used is panel data consisting of time series data for 2010-2019 and cross section data from 5 districts/cities in Yogyakarta Province. In estimating the regression model in this study, panel data regression analysis method was used using the Fixed Effect Model. The regression results show that: The variables of economic growth, degree of fiscal decentralization and open unemployment rate simultaneously have a significant effect on income inequality in Yogyakarta Province; Partialy, the variable economic growth has no significant effect on income inequality in Yogyakarta Province; the variable degree of fiscal decentralization has a positive and significant effect on income inequality in Yogyakarta Province; the variable open unemployment rate has a negative and significant effect on income inequality in Yogyakarta Province. Thus, follow-up from local governments through the implementation of economic and non-economic policies is needed so that people's welfare can increase and income inequality can be reduced.