Electronic Theses and Dissertation

This study analyzes the relationship between structural change and income distribution in provinces of indonesia for period of 2002-2009. in particular, the study seeks to find out in extent to which structural change would affect income distribution. the research uses the panel data among provinces of indonesia during 2002 2009. these data are from central bureau of statistics (bps) of indonesia the method of analysis used in this research is descriptive analysis and quantitative analysis of panel data. the method of estimating panel data used in this study is fixed effect model. the results of analyses suggest that in general, structural change that occurred in the period 2002-2009 had both positive and negative impacts on income distribution depending on the province. the increase of tertiary sector share on the output significantly bas negative impact on income distribution. the implication of this research is that the government needs to put more attention to improve primary and secondary sector to maintain the low level of income distribution inequality in indonesia. keywords: structural change, income distribution, panel data, fixed effect.