Income Inequality Viewed from the Aspects of Welfare, Economy, and Demographics: Regression Analysis in the Cities of Malang, Madiun, and Surabaya
DOI:
https://doi.org/10.56707/ijoerar.v4i2.172Keywords:
Income inequality, Human development, Economic growth, Welfare, EconomyAbstract
Objective: This research seeks to identify the factors that potentially influence income inequality from the perspective of welfare (Human Development Index/HDI), economic factors (economic growth), and demographics (population) in the cities of Malang, Madiun, and Surabaya. Method: This study was conducted using a quantitative panel data regression method over the period 2020-2024, using Gretl software. Results: This study’s findings indicate that HDI has a positive and massive impact on income inequality. Economic growth has no significant effect, while population has a negative and big implication on income inequality. These results imply local government policies related to the equitable distribution of HDI, optimisation of economic growth, and the creation of job opportunities. Novelty: The novelty of this research lies in its focus on areas classified as cities by the central statistics agency in East Java, which face issues of income inequality, specifically the cities of Malang, Madiun, and Surabaya which have never been studied based on the most recent year.
References
Aghion, P., & Roulet, A. (2014). Growth and the smart state. Annual Review of Economics, 6, 913–926. https://doi.org/10.1146/annurev-economics-080213-040759
Aqilah, M., Muchtar, M., & Sihombing, P. (2024). Analisis Determinan Ketimpangan Pendapatan Di Pulau Sumatera. Journal of Law Administration and Social Science, 4, 13–24. https://doi.org/10.54957/jolas.v4i1.684
Ariasta, M. A. A., & Setiawati, R. I. S. (2024). Dampak TPT, IPM dan Jumlah Penduduk terhadap Melebarnya Ketimpangan Pendapatan antar Daerah di Jawa Timur. Jurnal Samudra Ekonomi Dan Bisnis, 15(3 SE-Articles). https://doi.org/10.33059/jseb.v15i3.10361
Arif, M., & Wicaksani, R. A. (2017). Ketimpangan Pendapatan Propinsi Jawa Timur dan Faktor-faktor yang Mempengaruhinya. The 6thUniversity Research Colloquium. https://journal.unimma.ac.id/index.php/urecol/article/view/1342
Asada, H. (2020). Impacts of sectoral labour productivity growth of emerging countries in East Asia. Economics Bulletin, 40(2), 906–919. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85088781947&partnerID=40&md5=b6da11cb5872b43a501e0f1a811c6d83
Bahmani-Oskooee, M., & Gelan, A. (2008). Kuznets inverted-U hypothesis revisited: A time-series approach using US data. Applied Economics Letters, 15(9), 677–681. https://doi.org/10.1080/13504850600749040
Baum-Snow, N., Freedman, M., & Pavan, R. (2018). Why has urban inequality increased? American Economic Journal: Applied Economics, 10(4), 1–42. https://doi.org/10.1257/app.20160510
BPS. (2024). Gini Ratio Menurut Kabupaten/Kota, 2024. https://yogyakarta.bps.go.id/id/statistics-table/2/MzMzIzI=/g
Charles, V., Gherman, T., & Paliza, J. C. (2022). The Gini Index: A Modern Measure of Inequality. In Modern Indices for International Economic Diplomacy (pp. 55–84). Springer International Publishing. https://doi.org/10.1007/978-3-030-84535-3_3
Dessy Hersahanty. (2022). Pengaruh Pendidikan Terhadap Keberhasilan Pekerja Migran Sektor Informal di Kota Palembang. Majalah Ilmiah Manajemen STIE Aprin Palembang, 9(1 SE-Articles), 167–177. https://doi.org/10.58437/mim.v9i1.26
Dias, W., & Indrawati, L. R. (2021). Analisis Determinan Ketimpangan Pendapatan Di Provinsi Jawa Barat Tahun 2015-2020. Jurnal Ekonomi Pembangunan, 10(2). https://doi.org/https://doi.org/10.23960/jep.v10i2.268
Domonkos, T. (2020). Inequalities and economic growth in eu countries. Politicka Ekonomie, 68(4), 405–422. https://doi.org/10.18267/J.POLEK.1284
Duarsa, F., & Wijaya, R. (2023). Analisis Pengaruh Pengeluaran Perkapita, RLS, AHH, dan Jumlah Penduduk Terhadap Ketimpangan Distribusi Pendapatan. Equilibria Pendidikan : Jurnal Ilmiah Pendidikan Ekonomi, 8, 117–124. https://doi.org/10.26877/ep.v8i2.17306
Farhan, M., & Sugianto, S. (2022). Analisis Faktor-Faktor yang Mempengaruhi Tingkat Ketimpangan Pendapatan di Pulau Jawa. SIBATIK JOURNAL: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi, Dan Pendidikan, 1(4 SE-Articles), 243–258. https://doi.org/10.54443/sibatik.v1i4.29
Gao, B., Wu, X., Yang, X., & Miao, H. (2024). Unveiling the Yin and Yang of expansionary monetary policy: Differential impact on inequality in China based on a national-level survey. Finance Research Letters, 69. https://doi.org/10.1016/j.frl.2024.106045
Ginanjar, A. E., Prakoso, A. F., Wulandari, W., & Dewi, R. M. (2024). The Effect of Education and Skills on Unemployment: the Moderation Role of Economic Growth. EKO-REGIONAL: Jurnal Pembangunan Ekonomi Wilayah, 19(2). https://doi.org/https://doi.org/10.32424/1.erjpe.2024.19.2.4524
Gobby, J., Mailhot, S., & Ivey, R. (2021). Are there environmental limits to achieving equality between humans? In Ecological Limits of Development: Living with the Sustainable Development Goals (pp. 180–190). Taylor and Francis. https://doi.org/10.4324/9781003087526-15
Goswami, D. (2022). Productivity and job reallocation: evidence from the Indian manufacturing. International Journal of Manpower, 43(6), 1425–1448. https://doi.org/10.1108/IJM-07-2020-0345
Hall, J. D. (2018). The effects of the quality and quantity of education on income inequality. Economics Bulletin, 38(4), 2476–2489. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85059475706&partnerID=40&md5=4ba6b8ac1f96aa00d307d3c36f38757c
Hanushek, E. A., & Woessmann, L. (2019). Knowledge capital and economic growth. In Research Handbook on the Sociology of Education (pp. 476–497). Edward Elgar Publishing Ltd. https://doi.org/10.4337/9781788110426.00036
Inquilla-Mamani, J., Salas-Avila, D., Reyes, B. V, & Inquilla-Arcata, F. (2023). Internal migrations as a factor in the growth of the informal economy in the Peruvian highlands. Revista de Ciencias Sociales, 29(4), 494–508. https://doi.org/10.31876/rcs.v29i4.41274
Jachimowicz, J. M., Szaszi, B., Lukas, M., Smerdon, D., Prabhu, J., & Weber, E. U. (2020). Higher economic inequality intensifies the financial hardship of people living in poverty by fraying the community buffer. Nature Human Behaviour, 4(7), 702–712. https://doi.org/10.1038/s41562-020-0849-2
James, K. S., Kulkarni, P. M., & Rana, M. J. (2024). Demographic Dividend in India: what do we Know? In India Population Report (pp. 21–45). Cambridge University Press. https://doi.org/10.1017/9781009318846.004
Juned, V. (2021). Using fuzzy C-means algorithm to cluster human development index. Communications in Mathematical Biology and Neuroscience, 2021, 1–15. https://doi.org/10.28919/cmbn/5225
Kannan, K. P., & Raveendran, G. (2009). Growth sans employment: A quarter century of jobless growth in india’s organised manufacturing. Economic and Political Weekly, 44(10), 80–91. https://www.scopus.com/inward/record.uri?eid=2-s2.0-84874142443&partnerID=40&md5=074392047beabce3029aba97ba59fc7d
Kararach, G. (2024). South Africa: Economic policies to promote equality and achieve high-income status. In Avoiding the Middle-Income Trap in Africa: Economic Challenges and Policy Responses (pp. 123–168). Springer Nature. https://doi.org/10.1007/978-3-031-69248-2_5
Kebede, G. F. (2023). Entrepreneurship and the Promises of Inclusive Urban Development in Ethiopia. Urban Forum, 34(1), 1–30. https://doi.org/10.1007/s12132-022-09458-8
Kenny, C. (2010). Is anywhere stuck in a malthusian trap? Kyklos, 63(2), 192–205. https://doi.org/10.1111/j.1467-6435.2010.00469.x
Kopitzke, G. (2020). The gini index of an integer partition. Journal of Integer Sequences, 23(9), 1–13. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85092769646&partnerID=40&md5=669941a072205d2754a732bb41cbec29
Kunenengan, R. M. A., Daisy S.M, E., & Rorong, I. P. F. (2023). Pengaruh Pertumbuhan Ekonomi dan Kemiskinan Terhadap Ketimpangan Pendapatan Lima Kabupaten/Kota di Bolaang Mongondow Provinsi Sulawesi Utara. Jurnal Berkala Ilmiah Efisiensi, 22(3). https://ejournal.unsrat.ac.id/v3/index.php/jbie/article/view/46905
Kurniasih, E. P. (2017). Effect of economic growth on income inequality, labor absorption, and welfare. Economic Journal of Emerging Markets, 9(2 SE-Articles), 181–188. https://doi.org/10.20885/ejem.vol9.iss2.art7
Larionova, N. I., & Varlamova, J. A. (2015). Analysis of human capital level and inequality interrelation. Mediterranean Journal of Social Sciences, 6(1S3), 252–255. https://doi.org/10.5901/mjss.2015.v6n1s3p252
Liang, C., & Wang, S. (2020). Low-skilled immigrants and urban development in china: A labor market perspective. Asian Economic Papers, 19(1), 114–128. https://doi.org/10.1162/asep_a_00760
Liang, Y., & Zhang, M. (2025). Regional trade networks and income inequality. Applied Economics Letters, 32(1), 14–22. https://doi.org/10.1080/13504851.2023.2244225
Liu, X., Zhou, C., Li, Y., & Fang, F. (2025). How economic stability shapes social relationship expenditures: Moderating effects of health and education. International Review of Economics and Finance, 99. https://doi.org/10.1016/j.iref.2025.104041
Majumdar, M., & Sen, J. (2024). Spatial Distribution of Human Development Indicators Using Census Data: Case of Kolkata Urban Agglomeration. In Sustainable Civil Infrastructures (pp. 181–205). Springer Science and Business Media B.V. https://doi.org/10.1007/978-981-97-1503-9_11
Makipantung, R. O., Walewangko, E. N., & Niode, A. O. (2023). Pengaruh Pertumbuhan Ekonomi dan Indeks Pembangunan Manusia (IPM) Terhadap Ketimpangan Distribusi Pendapatan di Wilayah Kabupaten Minahasa Provinsi Sulawesi Utara. Jurnal Berkala Ilmiah Efisiensi, 23(7). https://ejournal.unsrat.ac.id/v3/index.php/jbie/article/view/50012
Md Jamil, A. R., Law, S. H., Khair-Afham, M. S., & Trinugroho, I. (2024). Financial inclusion and income inequality in developing countries: The role of aging populations. Research in International Business and Finance, 67. https://doi.org/10.1016/j.ribaf.2023.102110
Mercan, M., & Azer, O. A. (2013). The Relationship between Economic Growth and Income Distribution in Turkey and the Turkish Republics of Central Asia and Caucasia: Dynamic Panel Data Analysis with Structural Breaks. Eurasian Economic Review, 3(2), 165–182. https://doi.org/10.14208/eer.2013.03.02.004
Nesterova, Y., Osborne, M., & Schweisfurth, M. (2025). Urban Education and Neighbourhood Inequality. In Sustainable Development Goals Series: Vol. Part F756 (pp. 49–64). Springer. https://doi.org/10.1007/978-981-96-5629-5_4
Nilasari, A., & Febrianti, R. (2025). Analisis Determinasi Ketimpangan Pendapatan Di Jawa Timur . RIGGS: Journal of Artificial Intelligence and Digital Business, 4(1 SE-Articles), 890–896. https://doi.org/10.31004/riggs.v4i1.1016
Novia, T. (2020). Analisis Pengaruh Pertumbuhan Ekonomi, Pengeluaran Pemerintah, Tenaga Kerja, Pekerja Berpendidikan SMA ke Atas, dan Investasi Terhadap Ketimpangan Pendapatan di Provinsi Bali Tahun 2016-2020. Pareto, 52. https://doi.org/https://doi.org/10.32663/pareto.v5i2.2765
Ota, T., & Tachiyama, K. (2024). Income policy and income distribution in selected Asian countries: China, Singapore, Japan and Australia. In Geopolitical Uncertainty and International Business: Shaping our Future World (pp. 113–134). Edward Elgar Publishing Ltd. https://doi.org/10.4337/9781035325412.00016
Perc, M. (2014). The Matthew effect in empirical data. Journal of the Royal Society Interface, 11(98). https://doi.org/10.1098/rsif.2014.0378
Prameswari, M., & Asmara, K. (2024). Determinan Migrasi Masuk di Kota Surabaya. Equilibrium : Jurnal Ilmiah Ekonomi, Manajemen Dan Akuntansi, 13, 500. https://doi.org/10.35906/equili.v13i2.2069
Prieto-Curiel, R., & Cabrera, C. (2025). Modeling Urban Population Dynamics and City-to-City Migration. In Understanding Complex Systems: Vol. Part F560 (pp. 99–117). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-031-82666-5_5
Pula, B. (2017). Dual Labor Market Theory/Dual Economy. In The Wiley Blackwell Encyclopedia of Social Theory (pp. 1–2). wiley. https://doi.org/10.1002/9781118430873.est0098
Purusa, N. A., Kurniawan, R., & Aqmala, D. (2025). Analysis of economic development and income inequality in Kedungsepur Strategic Area, Indonesia. Multidisciplinary Science Journal, 7(1). https://doi.org/10.31893/multiscience.2025013
Sagar, A. D., & Najam, A. (1998). The human development index: A critical review. Ecological Economics, 25(3), 249–264. https://doi.org/10.1016/S0921-8009(97)00168-7
Saleepon, R. (2020). Analysis of the relationship between income inequality and economic growth: Is there Kuznets curved in Thailand? ACM International Conference Proceeding Series. https://doi.org/10.1145/3429395.3429418
Saputro, A. T., & Setyowati, E. (2018). Pengaruh Pertumbuhan Ekonomi, Jumlah Penduduk, Indeks Pembangunan Manusia Dan Inflasi Terhadap Ketimpangan Pendapatan Provinsi Jawa Timur Tahun 2012-2015 [Universitas Muhammadiyah Surakarta]. http://eprints.ums.ac.id/id/eprint/67738
Saratchand, C. (2019). Some macro-theoretical foundations of jobless growth. Economic and Political Weekly, 54(13), 17–20. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85063593617&partnerID=40&md5=d27a2d89be254f2c2eedb5f1dddaff12
Sofilda, E., Nurhaida, D., & Hamzah, M. Z. (2024). Foreign direct investment experience in middle income countries. Cogent Economics and Finance, 12(1). https://doi.org/10.1080/23322039.2024.2376951
Speare, A., Liu, P. K. C., & Tsay, C.-L. (2019). Urbanization and Development: The Rural-Urban Transition in Taiwan. In Urbanization and Development: The Rural-Urban Transition in Taiwan. Taylor and Francis. https://doi.org/10.4324/9780429266836
Suhendra, I., Istikomah, N., Ginanjar, R. A. F., & Anwar, C. J. (2020). Human Capital, Income Inequality and Economic Variables: A Panel Data Estimation from a Region in Indonesia. Journal of Asian Finance, Economics and Business, 7(10), 571–579. https://doi.org/10.13106/jafeb.2020.vol7.no10.571
Syahri, D., & Gustiara, Y. (2020). Pengaruh Pertumbuhan Ekonomi dan Kemiskinan Terhadap Ketimpangan Pendapatan di Sumatera Utara Periode 2015-2019. Journal of Trends Economics and Accounting Research, 1(1). https://journal.fkpt.org/index.php/jtear/article/view/59
Szeles, M. R. (2013). Re-examining the relationship between economic growth and inequality in the New Member States. Quality and Quantity, 47(5), 2799–2813. https://doi.org/10.1007/s11135-012-9689-0
UN. (2020). Inequality – Bridging the Divide. United Nations. https://www.un.org/en/un75/inequality-bridging-divide
Urzúa, C. M., & Vilbert, J. (2024). An Oddity in The Human Development Index. Investigacion Economica, 83(327), 55–79. https://doi.org/10.22201/fe.01851667p.2024.327.85909
Vallés-Giménez, J., & Zárate-Marco, A. (2019). Productivity and Growth. In Encyclopedia of Law and Economics (pp. 1670–1677). Springer Science+Business Media. https://doi.org/10.1007/978-1-4614-7753-2_384
Vines, D., & Zeitlin, A. (2018). Dual Economies. In The New Palgrave Dictionary of Economics, Third Edition (pp. 3064–3073). Palgrave Macmillan. https://doi.org/10.1057/978-1-349-95189-5_307
Wahyudi, W., Sukmana, O., & Avianto, B. N. (2025). Economic and social transformation: The impact of urbanization on the informal worker. International Journal of Human Capital in Urban Management, 10(3), 499–512. https://doi.org/10.22034/IJHCUM.2025.03.07
Wang, L. (2021). High-skilled Migrants and Firm Productivity: Evidence from Internal Migration in China. China Journal of Economics, 8(4), 181–206. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85149970278&partnerID=40&md5=2fd10e0b8e844cc0fae4ea1e8ebef33f
Worldbank. (2025). Gini Index. World Bank. https://data.worldbank.org/indicator/SI.POV.GINI
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 International Journal of Emerging Research and Review
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
