The role of gender empowerment on income inequality in Indonesia: Evidence from panel data

Income inequality in Indonesia, remains as a serious global issue. This study is driven by the existing inter-regional disparities and the limited integration of gender indicators in inequality analysis, particularly across all provinces in Indonesia. The issue of income distribution inequality is certainly influenced by various factors. This study was conducted with the aim of understanding the effect of the Gender Empowerment Index (GEI), Human Development Index (HDI), poverty, and Domestic Investment (DI) on income inequality in Indonesia. The data in this study is secondary panel data sourced from the Central Bureau of Statistics, covering 34 provinces over the 2015-2023 period. The research method is the fixed effects model. The findings indicate that GEI does not have a statistically significant impact. On the contrary, HDI has a significant negative effect, while poverty and domestic investment have a significant positive effect on income distribution inequality. These findings highlight the need for inclusive human development policies, equitable investment distribution, and targeted poverty reduction strategies. This study also contributes by providing evidence-based recommendations to reduce interprovincial disparities in Indonesia and strengthen discussions on more equitable and fair policies.