The effect of economic growth on income inequality in the Special Region of Yogyakarta
DOI:
https://doi.org/10.18196/jesp.v26i1.25361Keywords:
Income inequality, economic growth, YogyakartaAbstract
This study focuses on income disparity and economic growth in the Yogyakarta Special Region. The area's slow economic expansion contributes to persistent income inequality. Using variables such as population, economic growth, district/city minimum wage, inflation, open unemployment rate, and income inequality, this study investigates the relationship between economic growth and income disparity. A quantitative approach is employed using panel data regression and Seemingly Unrelated Regression (SUR) on secondary data from the Central Bureau of Statistics (BPS). The results show that district minimum wage and open unemployment rate significantly and positively affect income inequality, while inflation, economic growth, and population size have no significant effect. These findings imply that inclusive development policies, equitable job creation, and wage regulations that consider the informal sector are essential for reducing regional income disparities in Yogyakarta.
References
Akinsola, F. A., & Odhiambo, N. M. (2023). Does inflation worsen income inequality? A meta-analysis. Economic Systems, 47(4), 101146. https://doi.org/10.1016/j.ecosys.2023.101146
Anggraini, F. W. (2024). Hubungan dependence pertumbuhan ekonomi, ketimpangan pendapatan, dan financial deepening di 6 negara anggota ASEAN.
Aprilia Putri, D. (2016). Analisis beberapa faktor yang mempengaruhi tingkat pengangguran di Jawa Timur tahun 2003–2014. Jurnal Pendidikan Ekonomi (JUPE), 4(3), 1–8.
Bai, J., & Ng, S. (2004). A PANIC attack on unit roots and cointegration. Econometrica, 72(4), 1127–1177. https://doi.org/10.1111/j.1468-0262.2004.00547.x
Baltagi, B. H. (2008). Econometric analysis of panel data (4th ed.). John Wiley & Sons.
Bloom, D. E., & Canning, D. (2003). Contraception and the Celtic Tiger. World Development, 31(11), 1999–2012.
Bourguignon, F. (2004). The poverty-growth-inequality triangle. World Bank Economic Review, 19(1), 1–24.
Deininger, K., & Squire, L. (1998). New ways of looking at old issues: Inequality and growth. World Bank Economic Review, 12(3), 395–418. https://doi.org/10.1016/S0304-3878(98)00099-6
Dewi, N., Yusuf, Y., & Iyan, R. Y. (2017). Pengaruh kemiskinan dan pertumbuhan ekonomi terhadap indeks pembangunan manusia di Provinsi Riau. JOM Fekon, 4(1), 870–882.
Erosa, A., & Ventura, G. (2002). On inflation as a regressive consumption tax. Review of Economic Dynamics, 5(1), 155–185.
Firdaus, A., & Indira Hasmarini, M. (2023). Analisis pengaruh jumlah penduduk, upah minimum kabupaten, pengangguran, dan indeks pembangunan manusia terhadap ketimpangan pendapatan kab/kota di Provinsi Bali pada tahun 2015–2022. Primanomics: Jurnal Ekonomi & Bisnis, 21(3), 116–123. https://doi.org/10.31253/pe.v21i3.2128
Hartini, N. T. (2017). Pengaruh PDRB per kapita, investasi dan indeks pembangunan manusia terhadap ketimpangan pendapatan antar daerah di Provinsi Daerah Istimewa Yogyakarta tahun 2011–2015.
Hidayat, Y. R., & Surahman, A. (2017). Inflation and income inequality: Empirical evidence from Indonesia. Journal of Indonesian Economy and Business, 32(1), 1–12.
Hidayat, Y. R., & Surahman, M. (2017). Analisis pencapaian tujuan bank syariah sesuai UU No. 21 Tahun 2008. Amwaluna: Jurnal Ekonomi dan Keuangan Syariah, 1(1), 34–50. https://doi.org/10.29313/amwaluna.v1i1.1996
Kapetanios, G., & Pesaran, M. H. (2007). Alternative approaches to estimation and inference in large multifactor panels: Small sample results with an application to modelling asset returns. Econometric Reviews, 26(1), 363–377. https://doi.org/10.1017/CBO9780511493157.013
Khasanah, D. U., & Kurniawan, M. L. A. (2024). Panel seemingly unrelated regression on employment in tourism sector: Evidence in Central Java Province. Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah, 19(1), 11–19.
Khoirudin, R., & Khasanah, U. (2018). Valuasi ekonomi objek wisata Pantai Parangtritis, Bantul Yogyakarta. Jurnal Ekonomi dan Pembangunan Indonesia, 18(2), 152–166. https://doi.org/10.21002/jepi.2018.09
Khoirudin, R., & Musta’in, J. L. (2020). Analisis determinan ketimpangan pendapatan di Daerah Istimewa Yogyakarta. Tirtayasa Ekonomika, 15(1), 17. https://doi.org/10.35448/jte.v15i1.6407
Khoirudin, R., Wahyuni, S., & Nugraha, C. B. (2021). Distribution of optimized public assets utilization in Yogyakarta Province. Analisis Bisnis Ekonomi, 19(1), 48–62. https://doi.org/10.31603/bisnisekonomi.v19i1.3757
Kurniawan, M. L. A., Khasanah, U., & Baharudin, S. ’Aisyah. (2023). Determinant of property price through the monetary variables: An ARDL approach. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 24(1), 12–23. https://doi.org/10.23917/jep.v24i1.20588
Lubis, A. L., Pratomo, D. S., & Nugroho, A. (2019). The effect of provincial minimum wage on wage inequality in Java.
Maghriza, A., & Hasmarini, T. (2024). Pengaruh indeks pembangunan manusia, upah minimum kabupaten/kota, jumlah penduduk miskin, dan tingkat pengangguran terbuka terhadap ketimpangan pendapatan di Daerah Istimewa Yogyakarta tahun 2019–2023. Economos: Jurnal Ekonomi dan Bisnis, 8(1).
Mankiw, G. N. (2011). Principles of economics (Pengantar ekonomi mikro). Salemba Empat.
Maurilla, A., Suriani, S., & Nasir, M. (2023). Do poverty and economic growth matter for income inequality reduction in Yogyakarta Province? Jurnal Ekonomi & Studi Pembangunan, 23(2), 308–322. https://doi.org/10.18196/jesp.v23i2.15859
Muhammad, F. I., & Rohtih, W. A. (2024). Revitalisasi ekonomi lokal mengurangi impor melalui pemberdayaan kreatif santri.
Neumark, D., & Wascher, W. (2007). Minimum wages and employment. Journal of Economic Literature, 45(3), 487–532. https://doi.org/10.2139/ssrn.961374
Parulian, T., Pramita, E. H., & Mahendra, A. (2023). The effect of inflation, unemployment, and poverty on income inequality in Indonesia. International Journal of Social Science, Educational, Economics, Agriculture Research and Technology (IJSET), 2(3), 45–56.
Purwanti, D. (2024). Inclusive economic growth and fiscal intervention: Could it reduce poverty, inequality, and unemployment in East Java? Jurnal Ekonomi & Studi Pembangunan, 25(1), 148–166. https://doi.org/10.18196/jesp.v25i1.21694
Reni, A. (2023). Pengaruh upah minimum kota dan jumlah penduduk terhadap penekanan angka kemiskinan di Kota Bandar Lampung menurut perspektif ekonomi Islam tahun 2012–2022.
Risdiyanto, E., Mollet, J. A., & Hutajulu, H. (2023). Analisis kemandirian fiskal dan belanja daerah terhadap kemiskinan di Provinsi Papua. Jurnal Ekombis Review: Jurnal Ekonomi dan Bisnis Review, 11(2), 1813–1822. https://doi.org/10.37676/ekombis.v11i2.4851
Riyanto, W. H., Firmansyah, M., & Arifin, Z. (2025). Analysis of the implementation of the minimum wage policy in Batu City. Optimum: Jurnal Ekonomi dan Pembangunan, 15(1), 88–97. https://doi.org/10.12928/optimum.v15i1.12105
Rizal, M., & Mustapita, A. F. (2024). Effect of minimum wages on labor, welfare and economic growth: Evidence from East Java Province. Optimum: Jurnal Ekonomi dan Pembangunan, 14(1), 10–19. https://doi.org/10.12928/optimum.v14i1.8139
Rohmah, Z., & Sastiono, P. (2017). Pengaruh upah minimum terhadap ketimpangan upah di Pulau Jawa. Jurnal Ekonomi dan Pembangunan Indonesia, 21(2), 137–154.
Sartono, S., Hodijah, S., & Achmad, E. (2023). Analisis determinan tingat kemiskinan di Kabupaten Batang Hari. https://repository.unja.ac.id/50817/
Sutrisno, E. Y., Hidayat, A. C., & Sutanto, A. (2023). Pemanfaatan e-commerce dan property management system dalam kegiatan bisnis perhotelan di era revolusi industri 4.0. Jurnal Kepariwisataan Indonesia, 17(1), 85–98. https://doi.org/10.47608/jki.v17i12023.85-98
Tambunan. (2001). Perekonomian Indonesia: Teori dan temuan empiris. PT. Ghalia Indonesia.
Umiyati, E. (2014). Analisa pertumbuhan ekonomi dan ketimpangan pembangunan antar wilayah di Pulau Sumatera. Jurnal Paradigma Ekonomika, 9(2), 2–3.
Yuniarti, D., & Sukarniati, L. (2021). Penuaan petani dan determinan penambahan tenaga kerja di sektor pertanian. Agriekonomika, 10(1), 38–50. https://doi.org/10.21107/agriekonomika.v10i1.9789
Zellner, A. (1962). An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias. Journal of the American Statistical Association, 57(298), 348–368. https://doi.org/10.1080/01621459.1962.10480804
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Nurul Azizah Az zakiyyah, Rifki Khoirudin, Altis Puspa Gatari
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
License
You are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
