Income Distribution Inequality Analysis between Regencies/Cities in Papua Province

Abstract

The phenomenon of inequality between regencies / cities in Papua province indicate an upward trend as a consequence of regional development policies which tend to be concentrated in coastal areas, but less attention to their equity. Performance development becomes meaningless when presenting the inequality of income distribution between regions is low and does not widen. The purpose of this study is to analyze the influence between variable factors of natural resources, labor absorption, agglomeration and economic growth on inequality of income distribution among regencies / cities in Papua Province period 2009-2013. Data were analyzed using a quantitative approach with descriptive and inferential statistics causal model with path analysis. The study concluded that the direct effect of factors of natural resources on a significant negative agglomeration and labor absorbed the significant positive agglomeration. The direct effect of factors of natural resources and labor absorbed the significant positive economic growth. The direct effect of factors of natural resources, labor absorption, agglomeration and economic growth on inequality of income distribution among regencies/cities in Papua Province is a significant positive. Furthermore, the indirect influence of factors of natural resources and manpower absorbed against inequality of income distribution among regencies/cities in Papua either through mediation and mediation agglomeration is significant economic growth as well as both the indirect effect of this is partial mediation. To lose or not widening inequality of income distribution among regencies / cities in Papua province local government policies are needed to improve the distribution of development in the district prioritized relatively underdeveloped and new developing without ignoring the more developed regions.

Keywords: unequal distribution of income among regions, the natural resources of labor absorption, agglomeration, economic growth