Analisis Pengaruh Pendapatan Per Kapita Terhadap Ketimpangan Pendapatan Di Provinsi Jawa Barat

Abstract

The economic development of a country or region is declared successful if an increase in per capita income is accompanied by a decrease in income inequality. West Java Province is one of the provinces that continues to increase per capita income during the period 2000 to 2015, but the increase in per capita income is not accompanied by a decrease in income inequality. The reversed U-curve theory Kuznets states that the relationship between increasing per capita income and income inequality will form an inverted U-curve pattern. The objective of the research is to estimate the economic model that can explain the influence of income per capita to income inequality in West Java Province. The method used is correlational analysis with econometric approach. The data used are time series data from 1975 until 2015 and model estimation using Ordinary Least Square (OLS) method with quadratic polynomial function. Not in accordance with Kuznets' reversed U-curve theory, the results of the study indicate that the effect of increased income per capita on income inequality in West Java Province shapes the U curve pattern. The phase of decreasing income inequality occurs when per capita income is below 12.329 million rupiah per year, An increase in income inequality occurs when per capita income is above 12.329 million rupiah per year.