Can Economic Growth Reduce Income Inequality?
Income inequality is a phenomenon that is often found in the development process of a region. Income inequality between regions is expected to decrease along with the increase in economic growth. This study aims to analyze the ability of economic growth in decreasing income inequality, poverty, and unemployment inter-region in Kalimantan Island. This study used cross-section data from four provinces in Kalimantan within 9 years which then analyzed using panel data regression method. Study findings show that economic growth does not give a significant impact on decreasing income inequality and poverty in Kalimantan. Economic growth only has a significant impact on unemployment, but the impact is positive which means when the economic growth increases, the unemployment increases as well.
Keywords - Economic Growth, Income Inequality, Poverty, Unemployment