Impacts of Inequality and Poverty on COVID-19 in Indonesia
top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 04 March 2024

Impacts of Inequality and Poverty on COVID-19 in Indonesia

Nur Setyowati, Nur Sabila Soraya Amalina

National Kaohsiung University of Science and Technology, Southern Taiwan University of Science and Technology

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.07.01.565

Pages: 140-151

Keywords: COVID-19, Inequality, Poverty

Abstract

Purpose: The purpose of this study was to investigate how inequality and poverty contributed to COVID-19 cases and mortality using panel regression. Design/methodology/approach: The data cover semiannual observations during the COVID-19 period spanning from 2019 to 2022 in 34 provinces in Indonesia. This study split samples into high- and low-inequality provinces and apply the fixed effect panel regression on COVID-19 cases and mortality. Findings: The results suggest that the effect of inequality on the spread of COVID-19 was greater in low-inequality provinces. Whereas poverty and unemployment positively influenced the total cases in high-inequality provinces. The variable of unmet health facility had a negative impact on COVID-19 cases, but education positively influenced COVID-19 cases. There were identical results for all the variables when looking at COVID-19 mortality, except for unemployment. Unemployment showed a positively significant influence on COVID-19 mortalities in all samples, whereas it only influenced COVID-19 cases in high-inequality provinces. Originality/value: the most crucial outcome of this study concerns the distinctive implications for different types of inequality and their impact on COVID-19.

References

  1. Abedi V, Olulana O, Avula V, Chaudhary D, Khan A, Shahjouei S, Li J, Zand R. (2021). Racial, Economic, and Health Inequality and COVID-19 Infection in the United States. J Racial Ethn Health Disparities, 8(3):732-742. doi: 10.1007/s40615-020-00833-4.

  2. Ahmed, T., Rahman, A.E., Amole, T.G. et al. (2021). The effect of COVID-19 on maternal newborn and child health (MNCH) services in Bangladesh, Nigeria and South Africa: call for a contextualised pandemic response in LMICs. Int J Equity Health, 20(77). https://doi.org/10.1186/s12939-021-01414-5

  3. Almeida, V., Barrios, S., Christl, M. De Poli, S., Tumino, A., and Wielen, W.V.D., (2021). The impact of COVID-19 on households´ income in the EU. J Econ Inequal , 19, 413–431. https://doi.org/10.1007/s10888-021-09485-8

  4. Amate-Fortes, Ignacio, and Almudena Guarnido-Rueda. (2023). Inequality, public health, and COVID-19: an analysis of the Spanish case by municipalities. Eur J Health Econ, 24, 99–110. https://doi.org/10.1007/s10198-022-01455-9

  5. Aspachs, Oriol, Ruben Durante, Alberto Graziano, Josep Mestres, Jose G Montalvo, and Marta Reynal-Querol. (2022). Real-time inequality and the welfare state in motion: evidence from COVID-19 in Spain. Economic Policy, 37(109), 165-199. https://doi.org/10/1093/epolic/eiac008

  6. Bacher-Hicks, A., Goodman, J., & Mulhern, C. (2021). Inequality in household adaptation to schooling shocks: Covid-induced online learning engagement in real time. Journal of Public Economics, 193, 104345. doi:10.1016/j.jpubeco.2020.104345

  7. Bick, Alexander, Adam Blandin, and Karel Mertens. (2023). "Work from Home before and after the COVID-19 Outbreak." American Economic Journal: Macroeconomics, 15(4): 1-39. DOI: 10.1257/mac.20210061

  8. Bonaccorsi, G., Pierri, F., Cinelli, M., Flori, A., Galeazzi, A., Porcelli, F., Schmidt, A. L., Valensise, C. M., Scala, A., Quattrociocchi, W., & Pammolli, F. (2020). Economic and social consequences of human mobility restrictions under COVID-19. Proceedings of the National Academy of Sciences of the United States of America, 117(27), 15530–15535. https://doi.org/10.1073/pnas.2007658117

  9. Bonacini, L., Gallo, G & Scicchitano, S. (2021). Working from home and income inequality: riks of a ‘new normal’ with COVID-19. J Popul Econ, 34, 303-360. https://doi.org/10.1007/S00148-020-00800-7

  10. Bukari, C., Aning-Agyei, M.A., Kyeremeh, C. et al. (2022). Effect of COVID-19 on Household Food Insecurity and Poverty: Evidence from Ghana. Soc Indic Res, 159, 991–1015. https://doi.org/10.1007/s11205-021-02766-9

  11. Chakrabarty, Ebajyoti, Bhanu Bhatia, Maneka Jayasinghe, and David Low. (2023). Relative deprivation, inequality and the Covid-19 pandemic. Social Science & Medicine, 324, https://doi.org/10.1016/j.socscimed.2023.115858.

  12. Ferreirea, F.H.G. (2021). INEQUALITY IN THE TIME OF COVID-19. International Monetary Fund. FINANCE & DEVELOPMENT, 20-23.

  13. Gomes da Silva J, Silva CS, Alexandre B and Morgado P (2021) Education as a Predictor Factor for Knowledge of COVID-19 in Portugal. Front. Public Health. 9 (680726). doi: 10.3389/fpubh.2021.680726

  14. Irlacher, Michael and Koch, Michael. (2021). "Working from Home, Wages, and Regional Inequality in the Light of COVID-19" Jahrbücher für Nationalökonomie und Statistik, 241(3), 373-404. https://doi.org/10.1515/jbnst-2020-0030

  15. Jæger, M. M., & Blaabæk, E. H. (2020). Inequality in Learning Opportunities during Covid-19: Evidence from Library Takeout. Research in Social Stratification and Mobility, 100524. doi:10.1016/j.rssm.2020.100524

  16. Kumhof, M., Rancière, R. (2010). Inequality, Leverage and Crises. IMF Working Paper. WP/10/268. Available online at https://www.imf.org/external/pubs/ft/wp/2010/wp10268.pdf

  17. Lindsey, T., & Mann, T. (2020, April 9). Indonesia was in denial over coronavirus: now it may be facing a looming disaster. The Jakarta Post. https://doi.org/10.1017/CBO9781107415324. 004

  18. Lee JK, Son YJ. (2018). Gender Differences in the Impact of Cognitive Function on Health Literacy among Older Adults with Heart Failure. Int J Environ Res Public Health, 15(12), 2711. doi: 10.3390/ijerph15122711.

  19. Luo, R.. Liu, C., Gao, J., Wang, T., Zhi, H., Shi, P., & Huang, J. (2020). Impacts of the COVID-19 pandemic on rural poverty and policy responses in China. Journal of Integrative Agriculture, 19(12), 2946–2964. https://doi.org/10.1016/S2095-3119(20)63426-8

  20. Mahendradhata Y, Andayani NLPE,Hasri ET, Arifi MD, Siahaan RGM,Solikha DA and Ali PB. (2021). The Capacity of the Indonesian Healthcare System to Respond to COVID-19. Public Health, 9:649819.

  21. Martinez-Bravo, M., Sanz, C. (2021). Inequality and psychological well-being in times of COVID-19: evidence from Spain. Series 12, 489–548. https://doi.org/10.1007/s13209-021-00255-3

  22. McCurry, J., Ratcliffe, R., Davidson, H. (2020). Mass testing, alerts and big fines: the strategies used in Asia to slow coronavirus. https://www.theguardian.com/world/2020/mar/11/mass-testing-alerts-and-big-fines-the-strategies-used-in-asiato-slow-coronavirus.

  23. McKibbin, W., & Fernando, R. (2020). The Global Macroeconomic Impacts of COVID-19: Seven Scenarios. Asian Economic Papers, 1–55. doi:10.1162/asep_a_00796

  24. Mirahmadizadeh, A., Shamooshaki, M. T. B., Dadvar, A., Moradian, M. J., & Aryaie, M. (2022). Unemployment and COVID-19-related mortality: a historical cohort study of 50,000 COVID-19 patients in Fars, Iran. Epidemiology and health, 44, e2022032. https://doi.org/10.4178/epih.e2022032

  25. O'Donoghue, Cathal, Sologon, Denisa M. Sologon, Iryna Kyzyma, and John McHale. (2020). Modelling the Distributional Impact of the COVID-19 Crisis. Fiscal Studies, 41, 321-336. https://doi.org/10.1111/1475-5890.12231

  26. Patel, J. A., Nielsen, F. B. H., Badiani, A. A., Assi, S., Unadkat, V. A., Patel, B., Ravindrane, R., & Wardle, H. (2020). Poverty, inequality and COVID-19: the forgotten vulnerable. Public health, 183, 110–111. https://doi.org/10.1016/j.puhe.2020.05.006

  27. Rattay, P., Michalski, N., Domanska, O. M., Kaltwasser, A., De Bock, F., Wieler, L. H., & Jordan, S. (2021). Differences in risk perception, knowledge and protective behaviour regarding COVID-19 by education level among women and men in Germany. Results from the COVID-19 Snapshot Monitoring (COSMO) study. PloS one, 16(5), e0251694. https://doi.org/10.1371/journal.pone.0251694

  28. Regan Helen. (2021). Delta Varian is Ravaging the World but It’s Pushing Southeast Asia to Breaking Point. Hongkong CNN. https://edition.cnn.com/2021/08/04/asia/southeast-asia-delta-covid-explainer-intl-hnk/index.html

  29. Samarah, W.A (2021). ‘Evaluating the Effect of COVID-19 on the Palestinian Economy by Estimating the Relationship Between Economic Growth and Unemployment in Palestine. Studies in Business and Economic, 16, 206-217. https://doi.org/10.2478/sbe-2021-0034

  30. Carolina Sanchez-Paramo, C., Hill, R., Mahler, D.G., Yonzan, A.N. (2021). COVID-19 leaves a legacy of rising poverty and widening inequality. World Bank Blogs. https://blogs.worldbank.org/developmenttalk/covid-19-leaves-legacy-rising-poverty-and-widening-inequality

  31. Stantcheva, Stefanie. (2022). Inequalities in the Times of a Pandemic . NBER Working Paper No. w29657, SSRN: https://ssm.com/abstract=4010506

  32. Suryahadi, Asep, Ridho Al Izzati and Daniel Suryadarma. (2020). ‘The Impact of Covid-19 Outbreak on Poverty: An Estimation for Indonesia’. SMERU Working Paper, SMERU Research Institute.

  33. Zhang, Qi, Xinxin Zhang, Qi Cui, Weining Cao, Ling He, Yexin Zhou, Xiaofan Li, and Yunpeng Fan. (2022). "The Unequal Effect of the COVID-19 Pandemic on the Labour Market and Income Inequality in China: A Multisectoral CGE Model Analysis Coupled with a Micro-Simulation Approach" International Journal of Environmental Research and Public Health 19, 3, 1320. https://doi.org/10.3390/ijerph19031320

bottom of page