PENGARUH UPAH MINIMUM REGIONAL DAN RASIO INFRASTRUKTUR TERHADAPKESENJANGAN DISTRIBUSI PENDAPATAN DI INDONESIA

Abstract

This study aims to examine the impact of region minimum wage and infrastructure ratio onIncome
Distribution Gap in Indonesia. This study uses panel data for the period 2011-2017 and consists of 33
provinces, except North Kalimantan Province because it is a new province. By using fixed effect
panel data regression analysis, with dependent variable is gini index. While independent variable are
regional minimum wage and infrastructure ratio.On the one hand, based on hypothetical test, the
results show that the regional minimum wage and infrastructure ratio have a negative and significant
effect on the income distribution gap in Indonesia. On the other hand, based on the individual effects
test, the large islands such as Sumatera, Java, Kalimantan, Sulawesi, Bali, Maluku, and Papua have a
positive effect on the gini ratio. This shows that there is an impact of the infrastructure ratio function
and regional minimum wages in increasing the distribution of income as measured by the gini index.