Determinants Of Income Inequality In 10 Provinces On The Island Of Sumatra For The Period 2017 – 2021

The problem of income disparity is one of the economic problems faced by Indonesia, especially the Sumatra region. Income disparity is a state of unequal distribution of income between groups of people with high incomes and groups of people with low incomes which creates a gap orgap gap followed by uneven economic development in each region. The problem of income disparity is seen from the point of view of the even distribution of income distribution for each community group, which in this study uses the Williamson index as a measure of income disparity, the gap in these differences at least does not have gap which is so far away that the economy of Sumatra in particular can develop as a whole. This study used data from 10 provinces on the island of Sumatra for the period 2017 – 2021 to see the determinants of income disparity on the island of Sumatra. This study shows that 1) Gross regional domestic product has a negative and significant effect on income disparity figures for 10 provinces on Sumatra Island, 2) The open unemployment rate has a negative and significant effect on income disparity figures for 10 provinces on Sumatra Island, 3) Population density has a positive effect and significant to the income disparity figures of the 10 provinces on the island of Sumatra, 4) The number of poor people has no significant effect on the income disparity figures of the 10 provinces on the island of Sumatera.