EMPIRICAL ANALYSIS OF HDI, GDP PER CAPITA, UNEMPLOYMENT, AND INVESTMENT ON INDONESIA'S INCOME INEQUALITY 2020 - 2024
DOI:
https://doi.org/10.65886/ijde.v2i02.31Keywords:
GDP per capita, Human development index, Income inequality, Investment, Regression panelAbstract
This study empirically examines the influence of the Human Development Index (HDI), Gross Regional Domestic Product (GDP) per capita, unemployment rate, and investment on income inequality in Indonesia covering 34 provinces during the period 2020–2024. Inequality in income distribution is still a major challenge in national development, especially in the context of post-COVID-19 pandemic recovery. Through a quantitative approach with the panel data regression method and the Fixed Effect Model, this study found that HDI plays a significant role in lowering the Gini ratio, indicating that improving people's quality of life contributes to improving income distribution. In contrast, GDP per capita, unemployment, and investment showed no significant effect on inequality. These results confirm that improving the quality of human resources evenly across regions has an important role in reducing economic disparities. Therefore, efforts to reduce inequality require strategies that emphasize equitable development, especially in the fields of education, health, and access to inclusive economic opportunities.
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