Thiis study aiims to analyze the effects of agriicultural-sector GRDP, manufacturiing-sector GRDP, and per capiita expendiiture on iincome iinequaliity through employment absorptiion iin miicro and small iindustriies (MSIis) iin South Sulawesii Proviince duriing the periiod 2006–2025. Thiis research employs a quantiitatiive approach usiing secondary tiime-seriies data consiistiing of 20 observatiions obtaiined from the Central Statiistiics Agency of South Sulawesii Proviince. The data were analyzed usiing multiiple liinear regressiion, path analysiis, and the Sobel test wiith the assiistance of EViiews software. The results show that agriicultural-sector GRDP has a negatiive but iinsiigniifiicant effect on MSIi employment absorptiion. Manufacturiing-sector GRDP has a posiitiive but iinsiigniifiicant effect, whiile per capiita expendiiture has a posiitiive and siigniifiicant effect on MSIi employment absorptiion. Regardiing the diirect effects, agriicultural-sector GRDP has a posiitiive but iinsiigniifiicant effect on iincome iinequaliity. Manufacturiing-sector GRDP has a negatiive and siigniifiicant effect, whereas per capiita expendiiture has a posiitiive but iinsiigniifiicant effect. Meanwhiile, MSIi employment absorptiion has a posiitiive and siigniifiicant effect on iincome iinequaliity. The iindiirect-effect analysiis iindiicates that MSIi employment absorptiion does not siigniifiicantly mediiate the effects of agriicultural-sector GRDP and manufacturiing-sector GRDP on iincome iinequaliity. However, MSIi employment absorptiion siigniifiicantly mediiates the effect of per capiita expendiiture on iincome iinequaliity. These fiindiings iindiicate that strengtheniing productiive sectors, iincreasiing household purchasiing power, and developiing MSIis through iinclusiive poliiciies are necessary to ensure that economiic growth contriibutes to more equiitable iincome diistriibutiion iin South Sulawesii.
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