The Influence of Education, Health, and Infrastructure Levels on Income Inequality in Java Island for the Period 2015 - 2024

Abstract

The purpose of this study is to analyze the influence of education level, health, infrastructure, and the COVID-19 pandemic on inter-regional income inequality across six provinces on Java Island during the period 2015–2025. This research employs a quantitative approach using secondary data in the form of panel data, which combines time series data (2015–2025) and cross-sectional data (six provinces on Java Island). The data were obtained from the Central Statistics Agency (BPS) and analyzed using a panel data regression model with a Fixed Effect Model (FEM) estimation approach, implemented through EViews software version 12. The analysis results show that the variables of education and health have a negative and significant effect on income inequality, while infrastructure has a positive and significant effect. Meanwhile, the COVID-19 pandemic variable, used as a dummy, has a positive but not significant effect. Simultaneously, the four variables significantly influence income inequality, indicating that equitable development in the fields of education, health, and infrastructure is essential to support inclusive economic growth and reduce income disparities between regions on Java Island.