Effect of economic growth on income inequality, labor absorption, and welfare

Main Author: Kurniasih, Erni Panca
Format: Article info application/pdf eJournal
Bahasa: eng
Terbitan: Universitas Islam Indonesia , 2017
Subjects:
O40
J23
N1
Online Access: http://journal.uii.ac.id/JEP/article/view/7106
http://journal.uii.ac.id/JEP/article/view/7106/7400
Daftar Isi:
  • This research aims to analyze the effect of economic growth on income inequality, labor absorption and economic welfare in Indonesian provinces. A 165 observations of panel data was analyzed using path analysis. The result showed that the economic growth has significant negative effect on income inequality in Indonesian provinces but it has no significant effect on both labor absorption and economic welfare. The labor absorption has significant positive effect on income inequality even though it has no significant effect on economic welfare. In addition, the economic welfare is not significantly influenced by the income inequality.