| dc.description.abstract | Income inequality is one of the major development problem that can be solved through development of human resources. It was done by improving the quality of human capital through education. This study aims to explain the income inequality and the development of education in Indonesia and also to analize the role of education towards the reduction of income inequality by using panel data method. The data of this study includes 33 provinces in Indonesia during the years 2006 until 2011 is using variables : gini index, average length of school, the number of dropouts by level of education, GDP per capita, the ratio of government expenditure from education sector, and labor productivity. This study finds that school enrollment rates, average length of schools, the number of school dropouts in senior and junior high school, and GDP per capita have positive effect whereas other variables have negative effect with income inequality. The government needs to create the educational curriculum that can improve the skills thus economic independence and social welfare can be increased. | en |
