Analysis of the Impacts of Gender Development on Income Disparity in Indonesia

Gender Development emerges as a critical driver in alleviating such disparities. This study investigates the role of gender development in shaping income distribution in Indonesia between 2016 and 2023. A quantitative framework is employed, utilizing panel data regression analysis with the Fixed Effect Model (FEM). The Gini Index is the dependent variable, while the Gender Development Index (GDI) serves as the primary independent variable, alongside control variables such as GDP per capita and share of labor in the industrial sector. Key findings demonstrate that GDI significantly reduces income inequality through GRDP per capita, underscoring the role of gender equality in fostering equitable income distribution. The study concludes that policies emphasizing gender equity is more effective in reducing inequality.