The Effect of Total Population and Education toward Income Inequality: A Panel Study in Urban Regions, Indonesia
https://doi.org/10.56225/finbe.v4i1.443
Keywords:
Income Inequality, Total Population, Education, Panel Data Approach, Aceh ProvinceAbstract
Income inequality is a significant socio-economic issue in urban areas of Aceh Province, despite the region experiencing rapid economic growth. This phenomenon challenges social welfare and equitable access to economic opportunities, particularly amid a rising population and efforts to improve education quality. Previous studies suggest that population and education can influence income distribution; however, the findings remain mixed, and the local context of Aceh has not been thoroughly examined. Consequently, there is a research gap regarding the impact of demographic and educational factors on income inequality in Aceh's urban areas. This study utilizes panel data from 2010 to 2022, encompassing the total population, education, and income inequality. Data were obtained from the Central Bureau of Statistics (BPS) and other secondary sources. The analysis employs Panel Least Squares, selecting a Random Effects model based on Chow, Hausman, and Lagrange Multiplier tests, which is considered the most suitable approach for capturing interregional variations. The results indicate that the total population has a positive and significant impact on income inequality, suggesting that population growth intensifies competition for jobs and resources, thereby widening income disparities. Additionally, education, as represented by the average years of schooling, shows a positive but non-significant coefficient, indicating that improvements in formal education have not yet directly reduced inequality. This study highlights the significance of demographic management and inclusive education policies in mitigating income disparities. The findings carry policy implications for local governments in designing more equitable and sustainable economic development strategies.
Downloads
References
Arif, M., & Wicaksani, R. A. (2017). Ketimpangan Pendapatan Propinsi Jawa Timur dan Faktor-faktor yang Mempengaruhinya. In University Research Colloquium (pp. 323–328).
Arifin, S., & Firmansyah, F. (2017). Pengaruh Tingkat Pendidikan dan Kesempatan Kerja Terhadap Pengangguran di Provinsi Banten. Jurnal Ekonomi-Qu, 7(2), 1–9. https://doi.org/10.35448/jequ.v7i2.4978
Azulaidin, A. (2021). Pengaruh pertumbuhan penduduk terhadap pertumbuhan ekonomi. Jurnal Institusi Politeknik Ganesha Medan, 4(1), 30–34. https://doi.org/10.33395/juripol.v4i1.10961
Banerjee, A. V., & Duflo, E. (2007). The Economic Lives of The Poor. Journal of Economic Perspectives, 21(1), 141–167. https://doi.org/10.1257/jep.21.1.141
Barro, R. J. (2000). Inequality and growth in a panel of countries. Journal of Economic Growth, 5(1), 5–32. https://doi.org/10.1023/A:1009850119329
Becker, G. S. (1964). Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (1st ed.). National Bureau of Economic Research.
Bergström, V. (1997). Income Distribution and Growth. In Government and Growth (pp. 26–35). Oxford University PressOxford. https://doi.org/10.1093/oso/9780198290377.003.0005
Bigsten, A., & Levin, J. (2004). Growth, Income Distribution, and Poverty: A Review. In Growth, Inequality, and Poverty (Issue 32, pp. 251–276). Oxford University PressOxford. https://doi.org/10.1093/0199268657.003.0012
Bloom, D. E., & Freeman, R. B. (1986). The effects of rapid population growth on labor supply and employment in developing countries. Population and Development Review, 381–414.
Castles, S. (2011). Migration, crisis, and the global labour market. Globalizations, 8(3), 311–324.
De Schutter, O., Frazer, H., Guio, A.-C., & Marlier, E. (2023). The escape from poverty: Breaking the vicious cycles perpetuating disadvantage. Policy Press.
De Silva, I., & Sumarto, S. (2014). Does economic growth really benefit the poor? Income distribution dynamics and pro-poor growth in Indonesia. Bulletin of Indonesian Economic Studies, 50(2), 227–242.
Deswanti, A. I., Novitasari, D., Asbari, M., & Purwanto, A. (2023). Pengaruh Tingkat Pendidikan dan Pengalaman Kerja terhadap Kinerja Karyawan: Narrative Literature Review. Journal of Information Systems and Management, 2(3), 34–40. https://doi.org/10.47335/ema.v5i1.44
Farahita, C., & Nurhayati, S. F. (2025). Analisis Faktor-Faktor Yang Mempengaruhi Ketimpangan Pendapatan Di Provinsi Daerah Istimewa Yogyakarta. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi, 9(1), 1847–1860. https://doi.org/10.31955/mea.v9i1.5307
Fatsabit, M. I., & Yusran, H. L. (2019). Pengaruh Keterbukaan Ekonomi, Pendidikan, Dan Pengangguran Terhadap Ketimpangan Pendapatan Di Indonesia. Media Ekonomi, 27(1), 71–84.
Firdaus, A., & Hasmarini, M. I. (2023). Analisis Pengaruh Jumlah Penduduk, Upah Minimum Kabupaten, Pengangguran, dan Indeks Pembangunan Manusia. PRIMANOMICS : Jurnal Ekonomi Dan Bisnis, 21(3), 1.
Fithrian, M., Syechalad, M. N., & Nasir, M. (2015). Analisis Pengaruh Aggregat Demand dan Tingkat Pendidikan Terhadap Ketimpangan Pendapatan di Aceh. Jurnal Ilmu Ekonomi: Program Pascasarjana Unsyiah, 3(3), 23–32.
Gersbach, H. (1999). Product market competition, unemployment and income disparities. Weltwirtschaftliches Archiv, 135(2), 221–240.
Hanushek, E. A., & Woessmann, L. (2007). The Role Of Education Quality For Economic Growth. In World Bank Policy Research Working Paper (Issue 4122). World Bank, Washington, DC. https://doi.org/10.1596/1813-9450-4122
Hindun, H., Soejoto, A., & Hariyati, H. (2019). Pengaruh pendidikan, pengangguran, dan kemiskinan terhadap ketimpangan pendapatan di Indonesia. Jurnal Ekonomi Bisnis Dan Kewirausahaan, 8(3), 250–265. https://doi.org/10.26418/jebik.v8i3.34721
Jamison, E. A., Jamison, D. T., & Hanushek, E. A. (2007). The effects of education quality on income growth and mortality decline. Economics of Education Review, 26(6), 771–788.
Kannappan, S. (1985). Urban employment and the labor market in developing nations. Economic Development and Cultural Change, 33(4), 699–730.
Kentor, J. (2001). The long term effects of globalization on income inequality, population growth, and economic development. Social Problems, 48(4), 435–455.
Leão, C. P., Carneiro, M., Silva, P., Loureiro, I., & Costa, N. (2024). Decoding the Effect of Descriptive Statistics on Informed Decision-Making. International Conference Innovation in Engineering, 135–145.
Masniadi, R. (2012). Analisis Pengaruh Jumlah Penduduk, Tabungan, Dan Investasi Terhadap Tingkat Pendapatan Per Kapita Indonesia. Jurnal Ekonomi Pembangunan, 10(1), 69–80.
Matondang, Z. (2018). Pengaruh Jumlah Penduduk, Jumlah Pengangguran Dan Tingkat Pendidikan Terhadap Ketimpangan Pendapatan. Ihtiyath : Jurnal Manajemen Keuangan Syariah, 2(2), 225–270. https://doi.org/10.32505/ihtiyath.v2i2.715
Mayer, S. E. (2010). The relationship between income inequality and inequality in schooling. Theory and Research in Education, 8(1), 5–20.
Meliza, M., & Murtala, M. (2020). Analisis Ketimpangan Pendapatan di Provinsi Aceh. Jurnal Ekonomi Regional Unimal, 3(1), 27–38.
Nuraini, E. (2017). Pengaruh pertumbuhan ekonomi dan tingkat pendidikan terhadap disparitas pendapatan di wilayah gerbangkertosusila. Jurnal Ekonomi Pendidikan Dan Kewirausahaan, 5(1), 52–67.
Nurlina, N., & Chaira, T. M. I. (2017). Pengaruh Pertumbuhan Ekonomi Terhadap Distribusi Pendapatan Di Provinsi Aceh. Jurnal Samudra Ekonomika, 1(2), 174–182. https://doi.org/10.22437/pdpd.v5i2.4100
Perrons, D. (2009). Migration: Cities, regions and uneven development. In European Urban and Regional Studies (Vol. 16, Issue 3, pp. 219–223). SAGE Publications Sage UK: London, England.
Purba, S. F., Khotimah, H., Suli, A. A. T., & Wahyuningsi, M. (2024). The Impact of Educational Conditions on Income Inequality and Economic Growth in South Sumatra. KnE Social Sciences, 261–276. https://doi.org/10.18502/kss.v9i14.16104
Risnasari, R., Jamal, A., & Syahnur, S. (2022). Analysis of Economic Growth Core and Periphery: Evidence from Aceh Province, Indonesia. International Journal of Quantitative Research and Modeling, 3(2), 66–71. https://doi.org/10.46336/ijqrm.v3i2.277
Riyadi, M. (2024). Income Inequality: Socio-Economic Challenges of the 21st Century and Efforts to Overcome Them. Journal of Economic Growth and Development Review, 13–18.
Romi, R. S., Amiruddin, A., & Rahman, A. (2021). Studi ketimpangan distribusi pendapatan dan pertumbuhan ekonomi di kabupaten luwu timur. ICOR: Journal of Regional Economics, 2(2), 1–108.
Sari, Y., Soleh, A., & Wafiaziza, W. (2021). Analisis pengaruh pendidikan dan penduduk miskin terhadap ketimpangan pendapatan di Provinsi Jambi. Journal Development, 9(2), 169–180.
Satterthwaite, D. (2004). The under-estimation of urban poverty in low and middle-income nations (14th ed.). Iied.
Shinetiara, T., & Adry, M. R. (2023). Determinan ketimpangan pendapatan di Indonesia. Jurnal Ilmiah Ekonomi Dan Pembangunan, 12(1), 25–32. https://doi.org/10.24036/ecosains.12290857.00
Suaidah, I., & Cahyono, H. (2013). Pengaruh tingkat pendidikan terhadap tingkat pengangguran di Kabupaten Jombang. Jurnal Pendidikan Ekonomi, 1(3), 1–16.
Suhandi, N., Putri, E. A. K., & Agnisa, S. (2018). Analisis Pengaruh Jumlah Penduduk terhadap Jumlah Kemiskinan Menggunakan Metode Regresi Linear di Kota Palembang. Jurnal Ilmiah Informatika Global, 9(2), 77–82. https://doi.org/10.36982/jiig.v9i2.543
Telaumbanua, E., Harsono, I., & Soegiarto, I. (2024). Urbanisation in Indonesia: The relationship between income inequality, urban infrastructure, access to education, and population growth with social cohesion, environmental resilience, and housing quality to look at urbanisation in Indonesia. International Journal of Business, Law, and Education, 5(1), 603–614.
Violin, Z. I., & Lutfi, M. Y. (2022). Analisis Ketimpangan Pendapatan Di Pulau Jawa Dan Faktor Yang Mempengaruhinya Tahun 2010-2019. Jurnal Ekonomi Trisakti, 2(1), 227–252. https://doi.org/10.25105/jet.v2i1.14740
Wahyuni, S., & Andriyani, D. (2022). Pengaruh Inflasi, Jumlah Penduduk Dan Pertumbuhanekonomi Terhadapketimpangan Pendapatan Diprovinsiaceh. Jurnal Ekonomi Regional Unimal, 5(1), 39–47.
Walker, J., Pearce, C., Boe, K., & Lawson, M. (2019). The Power of Education to Fight Inequality: How increasing educational equality and quality is crucial to fighting economic and gender inequality. Oxfam.
Williamson, J. G. (1988). Migration and urbanization. Handbook of Development Economics, 1, 425–465.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Authors
This work is licensed under a Creative Commons Attribution 4.0 International License.
