Open AccessWELFARE INEQUALITY AND DEMOGRAPHIC DIVIDEND IN EAST JAVA: THE OVERLAPPING GENERATIONS (OLG) MODEL APPROACH
Author(s) -
Badara Shofi Dana,
Ati Musaiyaroh
Publication year - 2018
Publication title -
east java economic journal/east java economic journal
Language(s) - English
Resource type - Journals
eISSN - 2830-2001
pISSN - 2597-8780
DOI - 10.53572/ejavec.v2i1.12
Subject(s) - java , inequality , economics , overlapping generations model , welfare , economic inequality , income distribution , consumption (sociology) , demographic economics , labour economics , sociology , market economy , mathematical analysis , mathematics , computer science , programming language , social science
The issue of demography into an important discussion caused can affect economic growth and inequality in East Java Inequality in east Java showed an increase.Unequal distribution of income is a source of high inequality in East Java. This study aims to show the effectiveness of demographic changes can affect inequality in East Java with the approach of Overlapping Generations (OLG) model. The data used in this research is time series data in the first quarter of 2010- the fourth quarter 2015. Analyzer used in this research is Generalized Method of Moments (GMM). The results of this study show that demographic changes in East Java have the potential to increase inequality. The number of productive age populations with non-productive causes of high inequality. Consumption rate and the number of the productive workforces also become one of the sources of inequality. Therefore, the Settlement of inequality coupled with demographic changes in East Java needs the role of government through targeted social protection programs and infrastructure improvements. In addition, the need for land-based policies, opportunity-based policies, human resource capacity building policies, job matching.