The Effect of Government Expenditures and the Level of Labor Force Participation on Inequality of Income Distribution in Indonesia

Abstract

The purpose of this study is to determine the effect of government spending and the level of labor force participation on income inequality in provinces in Indonesia during the 2015-2019 period. This type of research is quantitative research. The data used is secondary data from 34 provinces in Indonesia for the 2015-2019 period. The data were processed using panel data analysis with a random effect model. The results show that government spending has a positive and significant effect on inequality in income distribution, while the level of labor  force  participation  has a  positive and  insignificant  effect  on  inequality  in  income distribution.