Towards a better measure of income inequality in Indonesia

Phil LEWIS, Kunta NUGRAHA

    Research output: Contribution to journalArticle

    12 Citations (Scopus)

    Abstract

    Indonesia has experienced significant economic growth in recent years (on average, 5% in 2000–08), but many people are still living in poverty. Income inequality, as measured by the official Gini coefficient, has also increased. This paper evaluates household income and income inequality in Indonesia, assessing both market and non-market income to reach a more accurate measure of how actual income affects living standards. We find that if household income considers non-market income, income distribution is significantly more balanced, the coefficient of income inequality falls from 0.41 to 0.21 and the income share of the population's poorest deciles increases more than fivefold. The results suggest that market income alone is a misleading measure of income distribution in Indonesia
    Original languageEnglish
    Pages (from-to)103-112
    Number of pages10
    JournalBulletin of Indonesian Economic Studies
    Volume49
    Issue number1
    DOIs
    Publication statusPublished - 2013

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    difference in income
    Indonesia
    income
    income distribution
    household income
    living standard
    market
    Income
    Income inequality
    economic growth
    poverty
    Household income

    Cite this

    LEWIS, Phil ; NUGRAHA, Kunta. / Towards a better measure of income inequality in Indonesia. In: Bulletin of Indonesian Economic Studies. 2013 ; Vol. 49, No. 1. pp. 103-112.
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    Towards a better measure of income inequality in Indonesia. / LEWIS, Phil; NUGRAHA, Kunta.

    In: Bulletin of Indonesian Economic Studies, Vol. 49, No. 1, 2013, p. 103-112.

    Research output: Contribution to journalArticle

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    AU - NUGRAHA, Kunta

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