The Income Distribution and employment in Desa Sumberejo, Kecamatan Pandaan Kabupaten Pasuruan

R. Kabul Santoso Mangku Adimuljo (pembimbing: Dr. C. Geoffrey Swenson), Dr. C. Geoffrey Swenson

1977 | Tesis | S2 Economics

KABUL SANTOSO MANGKU ADIMULJO. The income distribution and Employment in Desa Sumberejo, Kecamatan Pandaan, Pasuruan. (Under the Direction of C. Geoffrey Swenson as Chairman, Affendi Anwar, and Sajogyo as members).


The overall objectives of the study were to know about the effect of economic growth on income distribution. The specific objectives of this study '~ere: to measure the distribution of income and employment for all rural socio-economic groups in a given area; to identify the socio-economic factors which determine the rate of income


based on employment done by various rural socio-economic groups, and to provide possible policy implication resulting from the analysis.


To measure the various sources of income and employ¬ment among the socio-economic groups the focus of this study was the village of sumberejo, in Kecamatan Pandaan, Kabupaten Pasuruan. Two surveys were undertaken to measure household's income, the first survey was taken


in June 1976 and the second survey in October 1976.


The sample was taken on all job activities by way of a proportional stratified random sampling. The 170 house¬holds sample were divided into 10 categories of job activities. Data was collected for all sources of



greatest working hours en employee per day is the mixed job activities of the small traders/home industry workers and small enterprises (7 hours/employee), the smallest was the farmer (1.1 hour/employee/day) . This would imply that there may be few, if any possibilities for expansion of employment opportunities in agricul¬ture. It would be appear that additional employment opportunities must come from the non-agricultural sources.


Comparing the Gini ratio of income from agricul¬tural job activities with that of agricultural and mixed job activities, an improvement can be seen in the direction of a more equal distribution of income (0.297 for agricultural sources and 0.275 for all income sources, March - October 1977). The conclusion is that mixed job activities is a very important source of income for the group with the lowest income, particularly during time of poor harvest. In addition, the mixed job activities results in a better income distribution.


Thus, in this village the agricultural households need job diversification, because of underemployment in the agricultural households.


The effect of "wereng" pest attack and the effect of short period in the agricultural activities are the wider variation in the distribution of income.



i.e.: The wereng pest attack had a more serious effect on the lowest group of income earners. As in¬dicated by the Gini Ratio, the distribution of income moved to a much more unequal position in the second period compared to the first period.


And the agricultural activities show the wider variation in the income distribution of income over shorter periods due to the uncertainty in production and yields.


Three models using ordinary least square wore used to analysis the socio-economic variable which wore important in influencing the levels of income. This analysis provided the following conclusion: (a) The highly significant factor for determining the farmer's income were the land, the cash expense, the status of land tenure and mixed jon activities; (b) The factors found to be significant in influencing the labor's in-come were the working hours, the laborer job activities and tho family size; (c) The income of the small trader/home industry worker and small enterpreneur was found to be determined by the capital investment, the cash cost and the working hours.


Expanding the opportunities for employment will have a positive effect on the level of income received by the households. However, the opportunities for



expanded employment in agriculture are severally limited. The implication is that the government must find ways of employing more people in the non-agricultural sources. This will require investment, training and education.


Economic development, if it is to be successful, must roach the 18 percent of the people in this village who were under the poverty line.

Kata Kunci : income distribution, employment