Household Income Differences between Residential Distance from the Toll Road in Indonesia Sub Urban Areas

Tiara Ariyanda  -  Master of Economic Planning and Policy, Faculty of Economics and Business, Universitas Indonesia, Indonesia
*Khoirunurrofik Khoirunurrofik  -  Faculty of Economics and Business, Universitas Indonesia, Indonesia
Received: 31 Dec 2019; Published: 29 Feb 2020.
Open Access Copyright (c) 2020 The Indonesian Journal of Planning and Development

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Section: Articles
Language: EN
Statistics: 143
Abstract

This paper aims to examine the difference in household income level between sub-urban areas before the construction of Bakauheni-Terbanggi Besar toll road in 2014 and after the construction of the toll road in 2017. The construction of toll road is indicated to be associated with the income of society, the areas located closer to the toll road are inclined to have a higher income level. Furthermore, the construction of toll road creates social-economic opportunities and improve accessibility for society. This research was conducted by using OLS (Ordinary Least Square) Regression as the method to develop transformational changes that occurred in households using the income effect model. It is discovered that there is behavioral correlation both in and between the households that lead to shifting in the work sector, income level, health, and education. It is also revealed that the income level of households that reside closer to the toll road is relatively higher compared to those that reside farther. 

Keywords: access; household income; infrastructure; toll road

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