Determinants of gini ratio: a case study of low gini ratio in Madura


  • Imam Mahdi University of Muhammadiyah Malang
  • Setyo Wahyu Sulistyono University of Muhammadiyah Malang



Gini Ratio, Health, Education, Open Unemployment Rate, Poverty Rate


One of the regencies on Madura Island, namely Sumenep, will be the regency with the lowest gini ratio in East Java Province in 2022. This research was conducted to analyze: 1) the effects of health, education, open unemployment rate, and poverty rate partially on the Gini ratio; 2) the effects of health, education, open unemployment rate, and poverty rate simultaneously on the Gini ratio in Madura Island. The research method was carried out using panel data regression. The results obtained using the CEM: 1) health, education, and poverty levels have a negative and not significant effect; 2) the open unemployment rate influences positively and significantly; 3) all independent variables simultaneously have a significant positive effect. The government can issue policies to reduce income inequality in the form of providing free health services, education and compulsory education scholarships, periodic job fairs, skills training for workers, and distribution of social assistance that is right on target.


Abdullah, A., Doucouliagos, H., & Manning, E. (2015). DOES EDUCATION REDUCE INCOME INEQUALITY? A META-REGRESSION ANALYSIS. Journal of Economic Surveys, 29(2), 301–316.

Amruddin, Muskananfola, I. L., Febriyanti, E., Badi’ah, A., Pandie, F. R., Goa, M. Y., & Martinin, Y. (2022). Metodologi Penelitian Kuantitatif dan Kualitatif (Sumber Elektronis). CV Media Sains Indonesia.

Armstrong, R. A. (2019). Should Pearson’s correlation coefficient be avoided? Ophthalmic and Physiological Optics, 39(5), 316–327.

Baloch, M. A., Danish, Khan, S. U.-D., Ulucak, Z. Ş., & Ahmad, A. (2020). Analyzing the relationship between poverty, income inequality, and CO2 emission in Sub-Saharan African countries. Science of The Total Environment, 740, 139867.

Berger, T., & Enflo, K. (2017). Locomotives of local growth: The short- and long-term impact of railroads in Sweden. Journal of Urban Economics, 98, 124–138.

Berman, Y., Ben-Jacob, E., & Shapira, Y. (2016). The Dynamics of Wealth Inequality and the Effect of Income Distribution. PLOS ONE, 11(4), e0154196.

Chan, T. (2022). On a new class of continuous indices of inequality. Mathematical Social Sciences, 120, 8–23.

Coady, D., & Dizioli, A. (2018). Income inequality and education revisited: persistence, endogeneity, and heterogeneity. Applied Economics, 50(25), 2747–2761.

Colclough, C., Kingdon, G., & Patrinos, H. (2010). The Changing Pattern of Wage Returns to Education and its Implications. Development Policy Review, 28(6), 733–747.

Cysne, R. P., & Turchick, D. (2012). Equilibrium unemployment-inequality correlation. Journal of Macroeconomics, 34(2), 454–469.

Deming, D. (2023). Multidimensional Human Capital and the Wage Structure.

Duong, K. D., Nguyen, S. D., Phan, T. T.-P., & Luong, L. (2023). How Foreign Direct Investment, Trade Openness, and Productivity Affect Economic Growth: Evidence From 90 Middle-income Countries. Scientific Papers of the University of Pardubice, Series D: Faculty of Economics and Administration, 30(3).

Effendi, K. A. (2019). Oil Prices and Macroeconomic on the Islamic Banking Performance in OPEC Member Countries. International Journal of Energy Economics and Policy, 9(1), 200–204.

Ferreira, I. A., Gisselquist, R. M., & Tarp, F. (2022). On the Impact of Inequality on Growth, Human Development, and Governance. International Studies Review, 24(1).

Grottera, C., Pereira, A. O., & La Rovere, E. L. (2017). Impacts of carbon pricing on income inequality in Brazil. Climate and Development, 9(1), 80–93.

ILİMAN PÜSKÜLLÜOĞLU, E. (2023). Investigation of Human Capital Index Value and Income Distrubution in European and Central Asian Countries: The Case of Turkey. Research in Educational Administration and Leadership, 8(2), 421–463.

Inoua, S. (2021). Beware the Gini Index! A New Inequality Measure. ESI Working Paper 21-18.

Lasdiyanti, M., Kencana, E. N., & Suciptawati, P. (2019). Modeling Human Development Index of Bali with Spatial Panel Data Regression. European Journal of Engineering and Technology Research, 4(5), 132–137.

Lee, J.-W., & Lee, H. (2016). Human capital in the long run. Journal of Development Economics, 122, 147–169.

Luh Miyuki Mani, P. T. W., & Rindayati, W. (2020). Pengaruh Pendidikan dan Kesehatan terhadap Ketimpangan Pendapatan di Indonesia. IPB University.

Mangaraj, B. K., & Aparajita, U. (2020). Constructing a generalized model of the human development index. Socio-Economic Planning Sciences, 70, 100778.

Marantika, D., Hadi P, T., & Viphindrartin, S. (2018). DISPARITAS REGIONAL ANTAR PROVINSI DI INDONESIA 2011 – 2015 (MODEL REGRESI SPASIAL). Media Trend, 13(1), 31.

Marein, B. (2022). Colonial Roads and Regional Inequality. Journal of Urban Economics, 131, 103492.

Maulud, D., & Abdulazeez, A. M. (2020). A Review on Linear Regression Comprehensive in Machine Learning. Journal of Applied Science and Technology Trends, 1(4), 140–147.

Mdingi, K., & Ho, S.-Y. (2021). Literature review on income inequality and economic growth. MethodsX, 8, 101402.

Mishra, P., Pandey, C., Singh, U., Gupta, A., Sahu, C., & Keshri, A. (2019). Descriptive statistics and normality tests for statistical data. Annals of Cardiac Anaesthesia, 22(1), 67.

Monfort, M., Ordóñez, J., & Sala, H. (2018). Inequality and Unemployment Patterns in Europe: Does Integration Lead to (Real) Convergence? Open Economies Review, 29(4), 703–724.

O’Donnell, O., Van Doorslaer, E., & Van Ourti, T. (2015). Health and Inequality. Handbook of Income Distribution, 2, 1419–1533.

OECD. (2015). In It Together: Why Less Inequality Benefits All. OECD Publishing.

Ogbeide, E. N. O., & Agu, D. O. (2015). Poverty and Income Inequality in Nigeria: Any Causality? Asian Economic and Financial Review, 5(3), 439–452.

Ogundari, K., & Abdulai, A. (2014). Determinants of Household’s Education and Healthcare Spending in Nigeria: Evidence from Survey Data. African Development Review, 26(1), 1–14.

Ogundari, K., & Awokuse, T. (2018). Human capital contribution to economic growth in Sub-Saharan Africa: Does health status matter more than education? Economic Analysis and Policy, 58, 131–140.

PARK, C.-Y., & MERCADO, R. (2018). FINANCIAL INCLUSION, POVERTY, AND INCOME INEQUALITY. The Singapore Economic Review, 63(01), 185–206.

Polacko, M. (2021). Causes and Consequences of Income Inequality – An Overview. Statistics, Politics and Policy, 12(2), 341–357.

Putro, P. B. W., Mintarti, S., & Wijaya, A. (2018). Analisis determinasi pertumbuhan ekonomi dan kemiskinan. INOVASI, 13(2), 135.

Ramzan, M., Sheng, B., Shahbaz, M., Song, J., & Jiao, Z. (2019). Impact of trade openness on GDP growth: Does TFP matter? The Journal of International Trade & Economic Development, 28(8), 960–995.

SALIM, A., RUSTAM, A., HAERUDDIN, H., ASRIATI, A., & PUTRA, A. H. P. K. (2020). Economic Strategy: Correlation between Macro and Microeconomics on Income Inequality in Indonesia. The Journal of Asian Finance, Economics and Business, 7(8), 681–693.

Schoder, C. (2020). A Keynesian Dynamic Stochastic Disequilibrium model for business cycle analysis. Economic Modelling, 86, 117–132.

Shamim, T. (2022). Nurkse’s model of vicious circle of poverty theory: Is it applicable for dental profession in India. Journal of Family Medicine and Primary Care, 11(3), 1221.

Truesdale, B. C., & Jencks, C. (2016). The Health Effects of Income Inequality: Averages and Disparities. Annual Review of Public Health, 37(1), 413–430.

Ullah, M. I., Aslam, M., Altaf, S., & Ahmed, M. (2019). Some New Diagnostics of Multicollinearity in Linear Regression Model. Sains Malaysiana, 48(9), 2051–2060.

Yang, J., & Qiu, M. (2016). The impact of education on income inequality and intergenerational mobility. China Economic Review, 37, 110–125.

Yue, C., & Xu, X. (2019). Review of Quantitative Methods Used in Chinese Educational Research, 1978–2018. ECNU Review of Education, 2(4), 515–543.

Zubaidi, Z. (2022, December 28). Angka Gini Ratio di Sumenep Terendah se-Jatim, Ini Rahasianya. Jatimnow.Com.

Zulfikar, R. (2018). Estimation Model And Selection Method Of Panel Data Regression : An Overview Of Common Effect, Fixed Effect, And Random Effect Model. INA-Rxiv.