Abstract

This study aims to find out how much income inequality and the influence of capital expenditure, inflation, and the Human Development Index have on income inequality in the Bakorwil V area of East Java. The type of research used for this research is descriptive with a quantitative approach using secondary data obtained from the Central Bureau of Statistics, Bappeda, and Djpk.Kemenkeu. In this study, two methods were used, namely the theil entropic index to measure income inequality and panel data regression to determine how the dependent variable influences the independent variable. The results of the entropic thei index show that regencies and cities in the East Java Bakorwil V area have an average of 0.97-0.98 west of inequality in the East Java Bakorwil V area. The panel data regression results found that there were 2 variables that had a significant effect and 1 variable that had an insignificant effect. Variables that have a significant effect are Capital Expenditure and Inflation, then what is not significant is the Human Development Index.

Keywords: income inequality, capital expenditure, inflation, HDI, theil entropic index