Analysis of GDP, Education and Labor On Income Inequality In Bengkulu Province

Abstract

This research aims to foster sustainable prosperity in 10 city districts in Bengkulu province with analyzes the relationship between GDP, education funding, and labor on income inequality in these regions. This study uses secondary data in the form of time series data (2015-2022) and cross section data (10 districts/cities) sourced from the Central Statistics Agency, using panel data regression, choosing the Fixed Effect Model (FEM), Common Effect Model (CEM), or Random Effect Model (REM). Previously, classical assumption tests, Chow, Hausman and Lagrange Multiplier tests were also carried out. The results show that GDP and education have a negative and significant effect on income inequality, which means that increasing GDP and education will reduce income inequality. Meanwhile, labor has a positive and significant effect, which shows that increasing the number of workers will increase inequality, so it is necessary to improve the quality of human resources and distribution of labor so that income inequality between regions can be narrowed.

Keywords: Income Inequality, GDP, Education, Labor.