The Effect of Education Level and Health Level on Income Distribution Inequality in the Regencies/Cities of Aceh Province
DOI:
https://doi.org/10.30601/fm7p4041Keywords:
Education Level, Health Level, Income Distribution Inequality, Gini Ratio, Panel DataAbstract
This study analyzes the effect of education level and health level on income distribution inequality in the 23 regencies/cities of Aceh Province, Indonesia, over the period 2019–2023. The independent variables are education level (X1), measured by mean years of schooling, and health level (X2), measured by life expectancy, while the dependent variable is income distribution inequality (Y), measured by the Gini ratio. The study used a quantitative approach with panel data regression combining time-series and cross-sectional data (115 observations) obtained from Statistics Indonesia (BPS) of Aceh Province. The best model was selected using the Chow, Hausman, and Lagrange Multiplier tests, which indicated that the Common Effect Model is the most appropriate model. The results show that education level has a negative and significant effect on income distribution inequality (coefficient −0.012104; p = 0.0000), and health level also has a negative and significant effect (coefficient −0.006424; p = 0.0000). Simultaneously, the two variables have a significant effect on income distribution inequality (F-statistic 99.11681; p = 0.0000). The coefficient of determination (R²) is 0.638982, meaning that education level and health level explain about 63.9% of the variation in income distribution inequality, while the remaining 36.1% is explained by other factors outside the model, such as unemployment, economic growth, infrastructure, and government policy. The study recommends expanding access to education and improving the quality and distribution of health services across regencies/cities in Aceh.References
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