Decomposition of Household Income Inequality in Bali Based on the Migration Status




Decomposition, Inequality, Household, Income


Purpose : The study aims to determine the decomposition of household income inequality in Bali based on the migration status using regression-based decomposition analysis.

Theoretical framework: Alsina and Rodrick (1994) stated that hearing opinions will inhibit the growth process and will result in redistribution national income will be expensive. Other things Bourguignon (2004), stated that the worrying condition that occurred because relative presence of the population. Inequality in income occurs because of every normal observation with

population mean, which makes the scale independent of income.

Design/methodology/approach: The study uses consumption expenditure data from the National Socio-Economic Survey (SUSENAS), covering for more than 45,000 household, focusing on Bali province in 2018.

Finding: In general, the result shows that the proportion of rural-urban difference is the main cause of the household inequality in Bali, consistently with the prediction that migration from rural to urban areas is a key source of inequality. Moreover, the results of the Blinder-Oaxaca regression-based decomposition show that the rural-urban difference, the marital status of the head of the household, the highest education of the head of the household, and the number of household members affect the inequality of household income in Bali for both migrants and non-migrants.  Only gender of the head of the household has no significant effect on the inequality.

Research, Pratical & Sosial Implications: Practically, this research will contribute  finding decomposition of household income inequality


Download data is not yet available.


Akita, Takahiro; Lukman Rizal Affandi dan Yamada Yukino. 1999. Inequality In The Distribution Of Household Expenditures In Indonesia: A Theil Decomposition Analysis. The Developing Economies, XXXVII-2 (June 1999): 197–221

Akita, T dan A. Alisjahbana. 2002. “Regional Income Inequality in Indonesia and the Initial Impact of the Economic Crisis”. Bulletin of Indonesian Economic Studies. Vol 38. No.2. 201-222.

Akita Takahiro dan Miyata Sachiko. 2007. Urbanization, Education Expansion and Expenditure Inequlity in Indonesia 1996, 1999 and 2002. International Food Policy Research Institute, IFPRI Discussion Paper 00728 November 2007

Akita, Takahiro dan Miyata, Sachiko. 2017. Spatial Dimensions Of Expenditure Inequality In A Decentralization Indonesia. ADBI Working Paper Series No 720.

Amara, Mohamed, Yadi, Mohamed and Jemmali Hatem. (2017). Rural - urban migration and income diparity in Tunisia: A decomposition analysis. Paper in Regional Science (RSAI).

Alesina dan Rodrik. 1994. Distributive Politics and Economics Growth. Quarterly Journal of Economics, Volume 109, Ussue 2: 465-490

Bourguignon, Francois. 2004. The Poverty-Growth-Inequality Triangle. Paper: Indian Council for Research on International Economic Relation Feb 2004

Bigotta, M., J. Krishnakumar, Rani, U. 2015. Futher result on The Regression-Based Approach to Inequality Decomposition With Evidence From India. Empirical Economics Journal Vol 48

Chun, Natalie dan Khor, Niny. 2010. Minimum Wages and Changing Wage Inequality in Indonesia. ADB Economics Working paper Series No. 196, March 2010

Dagum, Camilo. 1998. New Approach to The Decomposition of The Gini Income Inequality Ratio. Physica-Verlag Heidelberg 1998.

Dustmann, Christian and Glitz, Albrecht. (2011). Migration and Education. Chapter 4 in Hanbook of The Economics of Education, Vol 4 pp 327 – 439

Erlando Angga dan Devanto Shasta Pratomo. 2014. Analsisi Terhadap Migran Sirkuler di Kota Surabaya.

Kuncoro, Mudrajad. 2004. Otonomi dan Pembangunan Daerah: Reformasi, Perencanaan, Strategi dan Peluang. Erlangga. Jakarta.

Taylor, S.E., Peplau, L.A., Sears, D.O. 2012. Psikologi Sosial Edisi Kedua Belas. Jakarta: Kencana

Todaro, MP dan Stepen C. Smith. 2006 Pembangunan Ekonomi Jilid I. Edisi Kesembilan. Jakarta: Penerbit Erlangga.

Sari, Siska Intan Permata dan Sugiharti, Lilik. (2016). Jurnal Ilmu Ekonomi Terapan Desember 2016; 01(02); 51 -65.

Wan Guanghua dan Zhou Zhangyue. 2005. Income Inequality in Rural China: Regresion-Based Decomposition Using Household Data. Development Economics, 9(1), 107-120

Wever, D, Robert dan Habibov Nazim. 2012. Social Capital, Human Capital and Economic Well-Being in the Knowledge Economy : Result from Canada’s Geberan Social Survey, Journal of Sociology & Social Welfare, June 2012, Volume XXXIX, Number 2

Wicaksono, Eko; Amir Hidayat; Nugroho, Anda. 2017. The Souces of Income A Regression Based Inequality Decomposition. ADBI Working Paper Series No 667 Februari 2017.




How to Cite

Pramandari, P. Y. ., Ashar, K. ., Khusaini, M. ., & Pratomo, D. S. . (2022). Decomposition of Household Income Inequality in Bali Based on the Migration Status. International Journal of Professional Business Review, 7(4), e0568.