| Journal | JIET (Journal of Applied Economics) |
| Volume & pages | JIET (Journal of Applied Economics) Vol. 8, no. 2 (2023) on pages 173-186 |
| Year | 2023 |
| A reviewer | M. Zainul Fanani (2102230008) |
| Date | June 12, 2024 |
| Research purposes | The study aims to examine the effect of temporary migration on income disparity, using SUSENAS panel data from 34 provinces during 2010-2019 and analyzing the time change while reviewing the regional aspect. |
| Research subject | the impact of recent migration and local income disparity, specifically focusing on the effect of temporary migration on income inequality in Indonesia |
| Method | the generalized method of moments dynamic panel regression to analyze the time change and review the regional aspect of the impact of temporary migration on income disparity |
| Research result | The results of the study show that in-migration has a significant positive effect on income disparity, while out-migration has a negative effect on income disparity. Additionally, inflation and consumption expenditure are suspected to contribute to the severity of inequality, while average years of schooling encourage better labor productivity. The study suggests that migration policies can be an alternative for regions to reduce income inequality through various mechanisms such as education, investment, access to public services, central and local coordination, and monitoring of labor exploitation practices |
| Research strengths | The strength of the study lies in its use of panel data from 34 provinces over a significant period (2010-2019) and the application of dynamic panel regression analysis to examine the impact of temporary migration on income inequality. By considering various factors such as in-migration, out-migration, inflation, consumption expenditure, and education, the study provides valuable insights into the relationship between migration and income disparitie |
| Research weaknesses | One potential weakness of the study could be the reliance on secondary data sources such as the BPS National Social and Economic Survey (SUSENAS), which may have limitations in terms of accuracy or coverage. Additionally, the study may face challenges in accurately capturing all relevant factors influencing income inequality through temporary migration, as there could be other unmeasured variables at play. Further, the study’s findings may be influenced by the assumptions and limitations of the generalized method of moments dynamic panel regression analysis |
| Conclusion | The study on the impact of temporary migration on income inequality in Indonesia provides valuable insights into the dynamics of migration and its effects on disparities in income. The findings suggest that in-migration has a significant positive effect on income inequality, while out-migration has a negative impact. Factors such as inflation, consumption expenditure, and education also play roles in influencing income disparitie. Policymakers can use these insights to develop strategies that address income inequality by considering the implications of temporary migration and its associated factors. |
| Suggestion | Based on the study’s findings, it is recommended that policymakers focus on implementing policies that address income inequality through various channels such as education, investment, access to public services, central and regional coordination, and monitoring of labor exploitation practices. Improving access to education in less developed areas, encouraging positive migration to enhance human resources, increasing investment in underdeveloped regions to create job opportunities, and enhancing access to public services can all contribute to reducing income inequality. Additionally, regulations that promote equalization of population density can help address social and economic challenges efficiently |
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