PENGARUH PENDIDIKAN DAN FAKTOR PENENTU LAIN TERHADAP KETIMPANGAN PENDAPATAN DI INDONESIA

Abstract

Education is the main need that society must have, because education plays an important role in economic development, the higher the quality and level of education of the people of a country, the higher the quality of its human resources, so that it can increase income levels and reduce inequality. A good education system is the key to a country's success in forming and developing quality human resources that will be able to continue the country's development. This research aims to analyze the influence of education and other variables on income inequality in Indonesia's provinces. Apart from that, other variables used are called control variables, including unemployment rate, poverty, GRDP Capita and infrastructure in the form of infrastructure with access to electricity. The method applied in this research uses panel data analysis in 33 provinces over a 10 year period, namely 2012- 2021 with the Fixed Effect Model approach as the best model, and uses STATA software in data processing. The results of data processing show evidence that education with the average length of school as an indicator has a significant negative effect on income inequality among provinces in Indonesia. Meanwhile, other variables in the form of poverty, unemployment, GRDP per Capita, and infrastructure show a negative direction towards income inequality. Meanwhile, the variables that have a significant influence on income inequality are the average number of years of schooling and GRDP per Capita, and the rest do not have a significant effect on income inequality.