Indonesia is beset by uneven regional resource endowment and interregional income inequalities. Kataoka (2011) concluded that these are largely determined by the labor productivity differential, using the Duro and Esteban (1998) inequality decomposition approach. We empirically explored the...

In his seminal work on national development and regional inequality, Williamson (1965) predicts that regional income inequality will pass through three distinct phases as a nation moves through the early development stages to maturity. In the early stages of economic development, regional income...