Published: 2024-02-01
Analysis Of The Influence Of Minimum Wages, Central-Regional Transfer Cost Allocation And Fiscal Decentralization On Regional Income Inequality
DOI: 10.35870/jemsi.v10i1.1890
Downloads
Abstract
In any nation, income disparity is a crucial issue for development. The disparity in income distribution is the primary cause of income inequality. The increasing income disparity is a sign of the growing inequality in the allocation of income in society. The authors of this study aim to investigate how income inequality is affected in the regencies and cities of one of provinces minimum wage in Indonesia, central-local transfer cost allocation, and fiscal decentralization. The Fixed Effect Model (FEM) approach is used in this study's panel data analysis. The author's analysis indicates that while there is no significant association between income inequality and fiscal decentralization, there is a substantial relationship between income inequality and the allocation of central-regional transfer costs and the minimum wage. Income inequality is significantly impacted by fiscal decentralization, minimum wage, and central-regional transfer cost allocation.
Keywords
Income, Minimum Wage, Fiscal Decentralization, Transfer Cost
Article Information
This article has been peer-reviewed and published in the JEMSI (Jurnal Ekonomi, Manajemen, dan Akuntansi). The content is available under the terms of the Creative Commons Attribution 4.0 International License.
-
Issue: Vol. 12 No. 1 (2026)
-
Section: Articles
-
Published: %750 %e, %2024
-
License: CC BY 4.0
-
Copyright: © 2024 Authors
-
DOI: 10.35870/jemsi.v10i1.1890
AI Research Hub
This article is indexed and available through various AI-powered research tools and citation platforms. Our AI Research Hub ensures that scholarly work is discoverable, accessible, and easily integrated into the global research ecosystem. By leveraging artificial intelligence for indexing, recommendation, and citation analysis, we enhance the visibility and impact of published research.
No author biographies available.
-
Anshari, M., Azhar, Z., & Ariusni, A. (2019). Analysis of the Effect of Education, Provincial Minimum Wage and Capital Expenditure on Income Inequality Across Provinces in Indonesia. Ecogen Journal, 1(3), 494.
-
Hatmawan, A. A., Suhendra, N., Tanjung, I. I., Ningsih, L., & Arisna, P. (2022). Relevansi Peran Financial Literacy dan Proactive Market Orientation (PMO) Terhadap Kinerja Keuangan UKM. INVENTORY: JURNAL AKUNTANSI, 6(2), 168-181.
-
Tanjung, I. I. (2020). Analisis Faktor-Faktor yang Mempengaruhi Pengangguran dan Kemiskinan di Provinsi Sumatera Utara (Doctoral dissertation, Universitas Sumatera Utara).
-
Akmal, S., Zulfikri, A., Al-Hidayat, R., & Sasmito, P. (2023). Tourist Perception of the Quality of MSME Products and Services in Tourist Destinations. West Science Journal Economic and Entrepreneurship, 1(05), 48-54.
-
Silamat, E., Chusumastuti, D., Al Hidayat, R., Hadi, A. J., Sucipto, B., Rijal, S., & Pratomo, A. B. (2023). Pelatihan dan Strategi Pemasaran Inovatif untuk Meningkatkan Awareness Produk UMKM di Pasar Lokal. Jurnal Pengabdian West Science, 2(04), 264-270.
-
Canare, T., Francisco, J. P., & Caliso, R. A. C. (2020). Decentralization And Income Inequality In A Panel And Cross-Section Of Countries. Journal Of International Development, 32(4), 543-579.
-
Hardinandar, F. (2020). The Role of Fiscal Policy on the Trade-Off Between Inequality and Poverty in Indonesia. Economic And Businessness, 16(1), 1-10.
-
Ridho, M. A. M., & Wijayanti, D. (2022). Analysis of the Effect of General Allocation Fund, Special Allocation Fund, Tax Revenue Sharing Fund, and Economic Growth on Income Inequality in Indonesia. Journal of Economic and Financial Policy, 1(1), 71-81.
-
Wong, S. W., Tang, B. S., Liu, J., Liang, M., & Ho, W. K. O. (2021). From "Decentralization Of Governance" To "Governance Of Decentralization": Reassessing Income Inequality In Periurban China. Environment And Planning A, 53(6), 1473-1489.
Authors who publish with this journal agree to the following terms:
1. Copyright Retention and Open Access License
Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
2. Rights Granted Under CC BY 4.0
Under this license, readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, including commercial use
- No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed
3. Attribution Requirements
All uses must include:
- Proper citation of the original work
- Link to the Creative Commons license
- Indication if changes were made to the original work
- No suggestion that the licensor endorses the user or their use
4. Additional Distribution Rights
Authors may:
- Deposit the published version in institutional repositories
- Share through academic social networks
- Include in books, monographs, or other publications
- Post on personal or institutional websites
Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.
5. Self-Archiving and Pre-Print Sharing
Authors are encouraged to:
- Share pre-prints and post-prints online
- Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
- Engage in scholarly communication throughout the publication process
6. Open Access Commitment
This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.