The Effect Of Minimum Wage, Open Unemployment Rate, And Population On Income Inequality In Yogyakarta (Period 2018-2022)

Introduction/Main Objective: This study aims to analyze the effect of minimum wage, open unemployment rate, and population on income inequality in the Special Region of Yogyakarta (DIY) using cross-sector data from five regencies/cities during the 2018-2022 period. Background Problems: DIY has the highest level of income inequality in Java, with a Gini Ratio that has continued to rise until 2022. Research Methods: The data used in this study comes from the Central Statistics Agency (BPS). Finding/Results: Using a multiple linear regression method, the results show that the minimum wage has a negative but insignificant effect on income inequality. Conversely, the open unemployment rate and population have a positive and significant effect on inequality. Based on these findings, it is concluded that the increase in population and unemployment are the main factors influencing inequality in DIY, while changes in the minimum wage do not have a significant impact. Conclusion: This study suggests that policies focusing on reducing unemployment and managing population growth are necessary to address inequality in DIY.