Analysis of the Determinants of Income Inequality in West Nusa Tenggara Province: The Role of Inflation, Open Unemployment Rate, Government Capital Expenditure, and Average Years of Schooling 2016–2025

Ilmiyah Nita Meilani; Iwan Harsono

doi:10.55681/economina.v5i10.4666

Authors

Ilmiyah Nita Meilani Universitas Mataram, Indonesia
Iwan Harsono Universitas Mataram, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i10.4666

Keywords:

Income Inequality; Inflation; Open Unemployment Rate; Capital Expenditure; Average Years of Schooling.

Abstract

This study aims to analyze the determinants of income inequality in West Nusa Tenggara Province for the period 2016–2025 using the Gini Ratio as an indicator of inequality and inflation, the Open Unemployment Rate (TPT), government capital expenditure, and Average Years of Schooling (RLS) as independent variables. The study uses a quantitative approach with annual secondary data analyzed using multiple linear regression with the Ordinary Least Squares (OLS) method through EViews 13. The results of the study indicate that partially inflation, TPT, and government capital expenditure have no significant effect on income inequality, while RLS has a negative and significant effect. Simultaneously, inflation, TPT, government capital expenditure, and RLS have a significant effect on income inequality with a probability value of 0.047158. The R-squared value of 0.810755 indicates that the model is able to explain 81.08 percent of the variation in income inequality. The results of the study emphasize the importance of increasing educational attainment as one aspect related to income equality in West Nusa Tenggara Province.

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