The Impact of Inflation and Open Unemployment Rate on Income Inequality in Riau Province
Abstract
Income inequality is one of the factors influencing the economy of a region. The aim of this research is to examine the effect of inflation and open unemployment rate variables on income inequality. This research utilizies secondary data from the Central Statistics Agency (BPS) of Riau Province from 2014 to 2023. The research uses multiple linear regression methods. We use a quantitative approach using eviews as an analytical tool to test the hypothetical model. The research findings show that inflation and open unemployment rate have a positive and significant impact on income inequality. From the results of the determination test, this means that income inequality in Riau province can be explained by the inflation variable and the open unemployment rate with a value of 73.21%, while the remaining 26.79% is explained by variables outside the research model. Finally, based on these findings, we propose some promising research directions and implications for government policymakers to consider the level of stability of the inflation rate, and also create jobs so that the unemployment rate decreases so that income inequality also decreases.
Downloads
References
Adu-Gyamfi, G. , Nketiah, E. , Obuobi, B. and Adjei, M. (2020) Trade Openness, Inflation
and GDP Growth: Panel Data Evidence from Nine (9) West Africa Countries. Open Journal of Business and Management, 8, 314-328. https://doi.org/10.4236/ojbm.2020.81019
Asogwa, F. O., Onyeke, Q. O., Kuma, P. M., Arazue, W. O., & Nkalu, C. N. (2022). Do macroeconomic indicators determine income inequality in selected African countries? Journal of Public Affairs, 22(4), 1–7. https://doi.org/10.1002/pa.2560
Balcilar, M., Chang, S., Gupta, R., & Miller, S. M. (2018). The relationship between the
inflation rate and inequality across U.S. states: a semiparametric approach. Quality and Quantity, 52(5), 2413–2425. https://doi.org/10.1007/s11135-017-0676-3
Bandyopadhyay, S. (2017). The Absolute Gini Is A More Reliable Measure Of Inequality For Time Dependent Analyses (Compared With The Relative Gini). Economics Letters, 162, 1–15. https://doi.org/10.1016/j.econlet.2017.07.012
Chrisamba, G. &. (2016). Analisis Ketimpangan Distribusi Pendapatan 33 Provinsi di Indonesia. Jurnal Ekonomi Pembangunan Optimum, 6(1), 43-51. https://doi.org/10.12928/optimum.v6i1.7843
Franita, R., & Fuady, A. (2016). Analisa pengangguran di Indonesia. Jurnal Ilmu Pengetahuan Sosial, 1(3), 88-93.
Hindun, A. S. (2019). Pengaruh Pendidikan, Pengangguran, dan Kemiskinan terhadap Ketimpangan Pendapatan di Indonesia. Jurnal Ekonomi Bisnis dan Kewirausahaan, 8(3), 250-265. https://doi.org/10.26418/jebik.v8i3.34721
Indriyani, S. N. (2016). Analisis Pengaruh Inflasi Dan Suku Bunga Terhadap Pertumbuhan Ekonomi di Indonesia Tahun 2005-2015. Jurnal Manajemen Bisnis Krisnadwipayana Universitas UNKRIS. https://doi.org/10.35137/jmbk.v4i2.37
Isbahi, M. B., Zuana, M. M. M., & Toha, M. (2024). The Multi-Social Relation of the Cattle Industry in the Plaosan Subdistrict Animal Market of Magetan Regency. Malacca: Journal of Management and Business Development , 1(1), 31–46. https://doi.org/10.69965/malacca.v1i1.51
Kuncoro. (2006). Ekonomi Pembangunan: Teori, Masalah, dan Kebijakan. UPP STIM YKPM.
Milanovic, B. (2016). Global Inequality. Cambridge: Harvard University Press. https://doi.org/10.2307/j.ctvjghwk4
Muhibbullah, M. &. (2019). The impact of inflation on the income inequality of Bangladesh: A time series analysis. International Journal of Business and Technopreneurship, 9(2), 141–150.
Mwakalila, E. (2022). Income inequality: a recipe for youth unemployment in Africa. SN Business & Economics, 3(1), 1–19. https://doi.org/10.1007/s43546-022-00394-0
Nurrahman, A. (2020). Upaya Pemerintah Dalam Mengatasi Masalah Pengangguran Di Indonesia. Delegasi IPDN, 2(1). https://doi.org/10.33701/jurnalregistratie.v2i1.2559
Suhendra, I., Istikomah, N., Ginanjar, R. A. F., & Anwar, C. J. (2020). Human Capital, Income Inequality and Economic Variables: A Panel Data Estimation from a Region in Indonesia. Journal of Asian Finance, Economics and Business, 7(10), 571–579. DOI: 10.13106/jafeb.2020.vol7.no10.571
Sukirno, S. 2008. Pengantar Teori Makro Ekonomi. Jakarta: PT Raja Grafindo Persada.
Sukirno, S. 2010 Introduction to Macroeconomics. Jakarta: PT. Raja Grafindo Persada.
Todaro, M. P. (1994). Pembangunan Ekonomi diDunia Ketiga Edisi keempat Jilid 1. Jakarta: Erlangga.
Yoertiara, R. F., & Feriyanto, N. (2022). Pengaruh pertumbuhan ekonomi, IPM, dan tingkat pengangguran terbuka terhadap ketimpangan pendapatan provinsi-provinsi di pulau Jawa. Jurnal Kebijakan Ekonomi Dan Keuangan, 1(1), 92–100.https://doi.org/10.20885/JKEK.vol1.iss1.art9
Copyright (c) 2026 Bani Aryendi, Sinta Yulyanti
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
