Understanding the Dynamics of Inequality: The Influence of Total Remittance and Education Rate among Indonesian Workers

Abstract

This research investigates the relationship between remittances, education, and income inequality in Indonesia. Using robust quantitative analysis spanning from 1993 to 2023, the study examines how these factors influence the Gini index, a measure of income distribution. Findings reveal that while remittances alleviate immediate financial pressures, their consumption-based nature contributes to widening wealth gaps. Similarly, disparities in educational attainment exacerbate inequality. The study underscores the need for targeted interventions to promote productive use of remittances for education and comprehensive educational reforms to enhance employability. By addressing these dynamics, policymakers can foster a more equitable society in Indonesia.