Analytical tools beyond Gini index to study inequality: A case of City of Blitar, East Java, Indonesia

Abstract

This paper demonstrates the use of some analytical tools beyond usual Gini index to study inequality in the City of Blitar (henceforth, Blitar), East Java, Indonesia. The Blitar's mid-term development plan has set social and macroeconomics indicators as basis to evaluate how local development is carried out by the city government. Of the government's primary concerns is how the city's economic pie is distributed between its citizens. As in many other places or context, Gini index has long been a to-go indicator to gauge inequality at first glance. Gini is in fact a never obsolete since it has many desirable properties to be a good indicator for inequality. However, it is necessary to go deeper so the policy makers would better understand the inequality decomposition and dynamics. Attempts to understand inequality should also include an assessment whether the observed growth is pro-poor. Better equality and pro-poor growth make quality growth, which is a primary dimension of sustainable development goals. This paper offers rather comprehensive yet practical guidance for policy analysts or planning practitioners to study inequality in a more meaningful way.