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The Gini Indeks and Factors Causes of Inequality in Income in Wajo District South Sulawesi Province in Indonesia

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The Gini Indeks and Factors Causes of Inequality in Income in Wajo District South Sulawesi Province in Indonesia May. 2018. Vol. 23, No.1 ISSN 2307-227X International Journal of Research In Social Sciences © 2013-2018 IJRSS & K.A.J. All rights reserved www.ijsk.org/ijrss THE GINI INDEKS AND FACTORS CAUSES OF INEQUALITY IN INCOME IN WAJO DISTRICT SOUTH SULAWESI PROVINCE IN INDONESIA Nashriah Akil ABSTRACT The purpose of this study to determine the factors - factors that cause inequality in Wajo regency of South Sulawesi province where during the time that has always been a measure of success of economic development in the measure of the level of the economic growth of a region. Methods using survey method with a sample size of 300 people by the criteria of the lowlands, coastal sea. Coastal lakes and urban areas. The analytical method used is the Gini index ratio with the standard of the World Bank by category according to the criteria of inequality Gini ratio. Data collection method used is survey conducted on four groups of regions (City, Plains / Peranian, Coastal and Coastal lake) using the technique of cluster sampling and then split three income brackets (Poor, Medium, Dan Rich), with techniques proportionate stratified random sampling. The result of the calculation penelitiamn Gini index in urban districts Tempe shows inequality value of 0.67, or it can be said that there is high inequality (G1>0.5) The calculations show that the agricultural area Maniangpajo districts, with the income from rice farming with inequality is high but still below the inequality in urban areas, it can be seen from a Gini index of 0,61.I ndeks gini coastal areas of the lake districts Tanasitolo of 0.67 indicates that this wiliyah own communities with high income inequality, while coastal areas are the ball is represented by the District have the gini index of 0.61 which indicates that this wlayah have income groups with high inequality. Keyword: Gin Index Ratio and Income Inequality. 1. INTRODUCTION resources. At the macro level it can be seen that a significant imbalance of development between rural 1.1. Background and urban, for example, between the Indonesian region of East and West Indonesia, between Java and Economic development of the region is a outside Java, and so forth (Choirie, 2009: 74). Local process in which the regional governments and Government Wajo as the implementing institution communities to manage existing resources and form building in Wajo also have a great responsibility to a pattern of a partnership between the Regional improve the performance of the regional economy Government and the private sector to create a new and improve the welfare of by community because jobs and stimulate the development of economic urgen local government through a series of activity (growth) in the region. As a measure of the development policy interventions have strategic success of development can be seen from the significance in determining the success goal economic growth, economic structure and smaller economic development. income inequality among the population, between regions and between sectors. But the fact that Indicators are often used to measure the economic growth is not always followed success of economic development is economic equalization adequately. growth. The pace of economic petumbuhan. This shows the level of economic development of the On a national scale, the level of macro, and sector. Development aggregative prosperity among the regions to be unbalanced economic growth is also a reflection of the level of approach to macroeconomic growth, and a income of a better society, whereas in non-economic centralized government which tends to undermine areas of these increases indicate an improvement in the equality and fairness of development between the level of health, education, housing, environment regions are quite large. Investment and resources life and other aspects of society. With a 9.15% absorbed and concentrated in urban and growth economic growth rate in 2014, the macro economic centers, while the area - areas far from urban development in Wajo can be quite successful in (hinterland) experienced excessive exploitation of moving the economy. Problems arise when May. 2018. Vol. 23, No.1 ISSN 2307-227X International Journal of Research In Social Sciences © 2013-2018 IJRSS & K.A.J. All rights reserved www.ijsk.org/ijrss economic growth is associated with the level of social welfare of the public economy. By looking at the economic structure of Wajo which is dominated by the agricultural sector in its contribution to the 2. STUDY OF THEORETICAL economic growth of 9.21% with a share of 30.88%, but under the mining and quarrying sector is the 2.1 Income Distribution growth rate of 15.12% with a share of 22.24%. The low rate of growth in the agricultural sector Income distribution reflects evenly or gap in compared to other sectors then this may lead to the development of a country sharing among a differences in the accelerated development of each population (Dumairy, 1999) .Distribusi revenue can region. Several region, especially in urban areas and be divided into two basic sizes, namely, distribution low-lying infrastructure to support trade and industry of size, is large or small portion of the revenue has a high economic growth rate, while the agrarian received by each and the functional distribution or regions experiencing economic. With growth distribution of the factors of production (Todaro, slowing growth difference is what triggers the 2000). Of the two definitions, it can be concluded income gap between the communities. that the inequality of income distribution or inequality reflects the results of development of a Thus, the construction of which is only region or country well received by each person or concerned with the economic growth rate, it turns from the ownership of the factors of production out that does not cause problems little for among the population. According to Irma Adelma development means in area. Without this objective and Cynthia Taft Morris (in Lincoln Arsyad, 1997) has been achieved, the pace of economic growth has there are eight things that cause inequality or not been able to solve the problem of equitable inequality distribution of income in Developing distribution of development outcomes such as Countries: jealousy, insecurity disitegrasi wilayah dan widening 1. High population growth which results in lower economic disparity and sharp. High economic per capita income. growth rates without the presence of pattern more 2. Inflation where the money income increases but equitable revenue sharing, it will basically be more it is not followed in proportion to the increase of profitable high-income segment of the population production of goods. compared to those with low incomes because no 3. Inequality of development among regions. leachate development to low-income groups 4. Investment is very much in projects that solid (trickledown effect). Based on the above, the need mod (Capital Incentive), so that the percentage for studies on. The gini indeks and factor - Causes of of revenue from additional working capital Income Inequality in Wajo district South Sulawesi compared with the percentage of income derived province in Indonesia. from work, so unemployment increases. 5. The low social mobility. 1.2. Purpose 6. The implementation of the industrial policy of import substitution which resulted in rising Based on the above background, the prices of industrial products in order to protect implementation of this study is Information on the the efforts of the capitalist class. factors - factors that cause inequality in Wajo are 7. Worsening exchange rate (term softrade)for intended to provide information on the levels of the Developing Countries gini indeks and income inequality among regions in 8. In the trade with the developed countries, as a Wajo. result of lack of demand elastisan Developed countries to export goods Developing Countries. 1.3. Objectives and targets 9. The destruction of folk craft industries such as carpentry, home industries, and others. Objectives of this study are: a. To investigate the factors - factors that cause 2.2 Development With Equitable the level of income inequality based approach to the household expenditure on coastal areas, Economic changes in addition to the pursuit lowlands, highlands and mountainous terrain as of economic growth must also consider aspects of well as the general Wajo by category according equalization. There are two arguments related to to the criteria of inequality Gini ratio. economic development issues with equalization b. Obtain a picture of the level of income (Todaro, 2000). inequality of each district is based on the level of income inequality of each region of coastal a. Traditional arguments areas, lowlands and mountainous terrain. May. 2018. Vol. 23, No.1 ISSN 2307-227X International Journal of Research In Social Sciences © 2013-2018 IJRSS & K.A.J. All rights reserved www.ijsk.org/ijrss Traditional arguments focused more on the Third. The low income and standard of living of the management of the factors of production, savings poor were tangible in the form of poor health and economic growth. Income distribution is very conditions, lack of food and nutrition and education uneven is something that had to be sacrificed in are low it will decrease their economic productivity order to spur economic growth either cepat. Akibat and ultimately result in lower overall growth of of influence theory and free market economic national economy. policies, the acceptance of thought as such by Fourth. Efforts to raise the income level of the poor economists in general from developed countries and will to grow increase demand for goods produced in developing countries, either implicitly or explicitly the country such as groceries and clothing. indicated that they did not heed the importance of the Fifth. With the achievement of a more equitable problem of poverty and the unequal distribution of distribution of income through efforts to reduce pendapatan.
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