PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2021 | 14 | nr 1 | 103--119
Tytuł artykułu

Analysis of the Relationship Between Income Inequality and Social Variables: Evidence from Indonesia

Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
This study tries to analyse the relationship between income inequality and social variables to provide additional empirical input on the related structural model. To achieve these objectives, this study uses the co-integration and long-run structural vector auto-regression (SVAR) for the panel data on 33 provinces in Indonesia over the 2005-2018 period. The study concludes that income inequality has a positive impact on population growth, unemployment, and poor health, whereas it also has a negative effect on education, human development, and urbanisation growth. Population growth, unemployment, poor health and urbanisation growth can increase income inequality, while education and human development index reduce income inequality. Furthermore, increased minimum wages can reduce income inequality, poor health, and increase education and per capita income. This study also found that per capita income has a long-term relationship with income inequality and population.(original abstract)
Rocznik
Tom
14
Numer
Strony
103--119
Opis fizyczny
Twórcy
  • Airlangga University, Surabaya, Indonesia
  • Airlangga University, Surabaya, Indonesia
autor
  • Airlangga University, Surabaya, Indonesia
Bibliografia
  • Adam, A., & Moutos, T. (2006). Minimum wages, inequality and unemployment. Economics Letters, 92(2), 170-176.
  • Agénor, P. R., & Lim, K. Y. (2018). Unemployment, growth and welfare effects of labor market reforms. Journal of Macroeconomics, 58, 19-38.
  • Ashta, A. (2013). A minimum wage solution to halving world poverty by 2015: A stakeholder approach. IIMB Management Review, 25(1), 6-18.
  • Askenazy, P. (2003). Minimum wage, exports and growth. European Economic Review, 47(1), 147-164.
  • Bahal, G., Raissi, M., & Tulin, V. (2018). Crowding-out or crowding-in? Public and private investment in India. World Development, 109, 323-333.
  • Becker, G. S. (1981). A treatise on the family. enlarged. Harvard University Press, Cambridge Massachusetts, 15, 16-67.
  • Berg, H. V. d. (2001). Economic growth and development. Mc Graw-Hill, New York.: World Scientific.
  • Bird, K., & Manning, C. (2008). Minimum wages and poverty in a developing country: Simulations from Indonesia's Household Survey. World Development, 36(5), 916-933.
  • Braakmann, N. (2011). The causal relationship between education, health and health related behaviour: Evidence from a natural experiment in England. Journal of Health Economics, 30(4), 753-763.
  • Brito, A. S., & Kerstenetzky, C. L. (2019). Has the minimum wage policy been important for reducing poverty in Brazil? A decomposition analysis for the period from 2002 to 2013. EconomiA, 20(1), 27-43.
  • Blanchard, O., & Quah, D., 1989. The dynamic effects of aggregate demand and supply disturbances. American Economic Review 79, 655-673.
  • Campano, F., & Salvatore, D. (1988). Economic development, income inequality and Kuznets' U-shaped hypothesis. Journal of Policy Modeling, 10(2), 265-280.
  • Campos, B. C., Ren, Y., & Petrick, M. (2016). The impact of education on income inequality between ethnic minorities and Han in China. China economic review, 41, 253-267.
  • Ciżkowicz, P., Kowalczuk, M., & Rzońca, A. (2016). Heterogeneous determinants of local unemployment in Poland. Post-Communist Economies, 28(4), 487-519.
  • Cuestas, J. C. (2017). House prices and capital inflows in Spain during the boom: Evidence from a cointegrated VAR and a structural Bayesian VAR. Journal of Housing Economics, 37, 22-28.
  • Curtin, T. R. C., & Nelson, E. A. S. (1999). Economic and health efficiency of education funding policy. Social Science & Medicine, 48(11), 1599-1611.
  • Cysne, R. P., & Turchick, D. (2012). Equilibrium unemployment-inequality correlation. Journal of Macroeconomics, 34(2), 454-469.
  • Detollenaere, J., Desmarest, A. S., Boeckxstaens, P., & Willems, S. (2018). The link between income inequality and health in Europe, adding strength dimensions of primary care to the equation. Social Science & Medicine, 201, 103-110.
  • Emami, K., & Adibpour, M. (2012). Oil income shocks and economic growth in Iran. Economic Modelling, 29(5), 1774-1779.
  • Fazaalloh, A. M. (2019). Is foreign direct investment helpful to reduce income inequality in Indonesia?. Economics and Sociology, 12(3), 25-36.
  • Flückiger, M., & Ludwig, M. (2017). Urbanization, fertility and child education in Sub-Saharan Africa. Economics Letters, 157, 97-102.
  • Gravelle, H., Wildman, J., & Sutton, M. (2002). Income, income inequality and health: what can we learn from aggregate data?. Social science & medicine, 54(4), 577-589.
  • Gindling, T. H., & Terrell, K. (2010). Minimum wages, globalization, and poverty in Honduras. World Development, 38(6), 908-918.
  • Hasan, M. S. (2010). The long-run relationship between population and per capita income growth in China. Journal of Policy Modeling, 32(3), 355-372.
  • Izraeli, O., & Murphy, K. J. (2003). The effect of industrial diversity on state unemployment rate and per capita income. The Annals of Regional Science, 37(1), 1-14.
  • Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of economic dynamics and control, 12(2-3), 231-254.
  • Karlsdotter, K., Martín, J. J. M., & del Amo González, M. P. L. (2012). Multilevel analysis of income, income inequalities and health in Spain. Social science & medicine, 74(7), 1099-1106.
  • Krozer, A., Brid, M., Carlos, J., & Rubio Badan, J. C. (2015). Inequality and minimum wage policy: Not even talking, much less walking in Mexico. Investigación económica, 74(293), 3-26.
  • Kudasheva, T., Kunitsa, S., & Mukhamediyev, B. (2015). Effects of access to education and information-communication technology on income inequality in Kazakhstan. Procedia********Social and Behavioral Sciences, 191, 940-947.
  • Kunze, L., & Suppa, N. (2017). Bowling alone or bowling at all? The effect of unemployment on social participation. Journal of Economic Behavior & Organization, 133, 213-235.
  • Kuznets, S. (1950). Conditions of statistical research. Journal of the American Statistical Association, 45(249), 1-14.
  • Kuznets, S. (1955). Economic growth and income inequality. The American economic review, 45(1), 1-28.
  • Kuznets, S. (1963). Quantitative aspects of the economic growth of nations: VIII. Distribution of income by size. Economic development and cultural change, 11(2, Part 2), 1-80.
  • Lee, M. R. (2001). Population growth, economic inequality, and homicide. Deviant Behavior, 22(6), 491-516.
  • Leibenstein, H. (1963). Population Growth and the Take-Off Hypothesis. In The Economics of Take-Off into Sustained Growth (pp. 170-184). Palgrave Macmillan, London.
  • Lise, J., Sudo, N., Suzuki, M., Yamada, K., & Yamada, T. (2014). Wage, income and consumption inequality in Japan, 1981-2008: from boom to lost decades. Review of Economic Dynamics, 17(4), 582-612.
  • Lucas Jr, R. E. (1988). On the mechanics of economic development. Journal of monetary economics, 22(1), 3-42.
  • Lütkepohl, H. (2005). New introduction to multiple time series analysis: Springer Science & Business Media.
  • Marks, Gary N. (2015). Education and Income Distribution. International Encyclopedia of the Social & Behavioral Sciences.(Second Edition), Pages 132-136.
  • Mariana, I. (2015). Consequences of the investment in education as regards human capital. Procedia Economics and Finance, 23, 362-370.
  • Massidda, C., & Mattana, P. (2013). A SVECM analysis of the relationship between international tourism arrivals, GDP and trade in Italy. Journal of Travel Research, 52(1), 93-105.
  • Matthew, P., & Brodersen, D. M. (2018). Income inequality and health outcomes in the United States: An empirical analysis. The Social Science Journal, 55(4), 432-442.
  • Nelson, R. R. (1956). A theory of the low-level equilibrium trap in underdeveloped economies. The American Economic Review, 46(5), 894-908.
  • Nugraha, A. T., Prayitno, G., Situmorang, M. E., & Nasution, A. (2020). The role of infrastructure in economic growth and income inequality in Indonesia. Economics and Sociology, 13(1), 102-115.
  • Paukert, F. (1973). Income distribution at different levels of development: A survey of evidence. Int'l Lab. Rev., 108, 97.
  • Pickett, K. E., & Wilkinson, R. G. (2015). Income inequality and health: a causal review. Social Science & Medicine, 128, 316-326.
  • Qin, D., Cagas, M. A., Ducanes, G., He, X., Liu, R., & Liu, S. (2009). Effects of income inequality on China's economic growth. Journal of Policy Modeling, 31(1), 69-86.
  • Qiu, L., & Zhao, D. (2019). Urban inclusiveness and income inequality in China. Regional Science and Urban Economics, 74, 57-64.
  • Ram, R. (1984). Population increase, economic growth, educational inequality, and income distribution: Some recent evidence. Journal of Development Economics, 14(3), 419-428.
  • Romer, P. M. (1986). Increasing returns and long-run growth. Journal of political economy, 94(5), 1002-1037.
  • Shahpari, G., & Davoudi, P. (2014). Studying effects of human capital on income inequality in Iran. Procedia-Social and Behavioral Sciences, 109, 1386-1389.
  • Siddique, M. A. B., Wibowo, H., & Wu, Y. (2014). Fiscal Decentralisation and Inequality in Indonesia: 1999-2008. University of Western Australia, Business School. Discussion Paper 14.22.
  • Sulemana, I., Nketiah-Amponsah, E., Codjoe, E. A., & Andoh, J. A. N. (2019). Urbanization and income inequality in Sub-Saharan Africa. Sustainable Cities and Society, 48, 101544.
  • Thornton, J. (2001). The Kuznets inverted-U hypothesis: panel data evidence from 96 countries. Applied Economics Letters, 8(1), 15-16.
  • Wildman, J. (2003). Modelling health, income and income inequality: the impact of income inequality on health and health inequality. Journal of Health Economics, 22(4), 521-538.
  • Wicaksono, E., Amir, H., & Nugroho, A. (2017). The sources of income inequality in Indonesia: A regression-based inequality decomposition. ADBI Working Paper, No. 667, Asian Development Bank Institute (ADBI), Tokyo.
  • Wilkinson, R. G., & Pickett, K. E. (2006). Income inequality and population health: a review and explanation of the evidence. Social science & medicine, 62(7), 1768-1784.
  • Yang, J., & Qiu, M. (2016). The impact of education on income inequality and intergenerational mobility. China Economic Review, 37, 110-125.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171615553

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.