East Java Economic Journal
Vol. 2 No. 1 (2018)

WELFARE INEQUALITY AND DEMOGRAPHIC DIVIDEND IN EAST JAVA: THE OVERLAPPING GENERATIONS (OLG) MODEL APPROACH

Badara Shofi Dana (Program Studi Magister Ilmu Ekonomi, Fakultas Ekonomi dan Bisnis, Universitas Jember)
Ati Musaiyaroh (Program Studi Magister Ilmu Ekonomi, Fakultas Ekonomi dan Bisnis, Universitas Jember)



Article Info

Publish Date
30 Mar 2018

Abstract

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.

Copyrights © 2018






Journal Info

Abbrev

ejavec

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

East Java Economic Journal invites manuscripts on an economics area, but not limited to economic development, finance, monetary, international trade, environmental, energy, public economics, econometrics, microfinance, health economics, and political economics related to the economy of East ...