Income Inequality Of Fruit Traders In Traditional Markets (Case Study: Medan City, North Sumatra Province)

Feb 28, 2025 by ADMIN 107 views

Income Inequality of Fruit Traders in Traditional Markets: A Case Study of Medan City, North Sumatra Province

Introduction

Medan City, the capital of North Sumatra Province, is renowned as the Center for Marketing and Consumption of Sweet Oranges. However, beneath the bustling atmosphere of trading activities in traditional markets, a harsh reality is faced by fruit traders. This case study aims to uncover the income inequality that occurs among them, analyze its causes, and examine its impact on prosperity.

Background

The city of Medan is a significant hub for fruit trading, with a large number of traditional markets and supermarkets operating in the area. Despite the economic importance of this sector, fruit traders often face numerous challenges that hinder their ability to earn a decent income. This study seeks to investigate the income inequality faced by fruit traders in Medan City, with a focus on understanding the causes and consequences of this issue.

Methodology

This research employed a purposive sampling method, targeting several traditional markets and supermarkets in Medan City. Data was collected through observation and interviews with traders, and analyzed using multiple linear regression methods.

Results

The results of this study revealed that 16.7% of fruit traders in Medan City live below the poverty line, based on the income limit per capita per year of 360 kg of rice. This figure increases to 20% if using the UMR limit as a reference. Furthermore, the level of income inequality of fruit traders is relatively high, with a Gini ratio value of 0.167, based on the criteria of the World Bank.

Causes of Income Inequality

This study also examined the factors that contribute to income inequality among fruit traders in Medan City. The results showed that there is no significant relationship between factors such as dependents, level of education, and age with income inequality. This indicates that income inequality is more influenced by other factors that are not examined in this study.

Problems Faced by Fruit Traders

Fruit traders in Medan City face numerous challenges that hinder their ability to earn a decent income. Some of the problems faced by these traders include:

Technical Problems

Small capital: Lack of capital is a major obstacle for traders to develop businesses and buy large amounts of fruit stock.
Unstable commodity/market prices: Fluctuations of uncertain fruit prices cause uncertainty in income and make traders vulnerable to losses.
Inadequate location: Limited land in traditional markets makes traders have to sell in a narrow and uncomfortable place.
Lack of cleanliness and attention of PD Market: The condition of market hygiene that is less maintained and the lack of attention from the market manager causes a slum and reduce the attractiveness of the buyer.
Number of Fruit Traders: Competition between traders in a strict market makes it difficult for traders to get buyers and increase profits.

Non-Technical Problems

Domestic workload: Fruit traders, especially women, often have a heavy household workload, thus hampering their concentration in running a business.

Conclusion

Income inequality among fruit traders in Medan City is a serious problem that needs to be overcome. Internal and external factors, such as capital, fruit prices, and market conditions, play an important role in creating gaps. Increasing access to capital, entrepreneurial training, and market arrangement can be a solution to improve the welfare of fruit traders and reduce income inequality.

Recommendations

This study only examines a number of traditional markets and supermarkets in Medan City. Further research is needed to analyze income inequality in all regions of Medan and in other cities in North Sumatra. This is important to get a more comprehensive picture of the condition of fruit traders in the area.

Limitations

This study has several limitations, including:

The sample size is limited to several traditional markets and supermarkets in Medan City.
The study only examines income inequality among fruit traders and does not consider other factors that may influence their income.
The study does not provide a comprehensive picture of the condition of fruit traders in all regions of Medan and in other cities in North Sumatra.

Future Research Directions

Future research should aim to:

Examine income inequality among fruit traders in all regions of Medan and in other cities in North Sumatra.
Investigate the factors that contribute to income inequality among fruit traders, including internal and external factors.
Develop solutions to improve the welfare of fruit traders and reduce income inequality, such as increasing access to capital, entrepreneurial training, and market arrangement.
Frequently Asked Questions (FAQs) about Income Inequality of Fruit Traders in Traditional Markets

Q: What is income inequality, and how does it affect fruit traders in Medan City?

A: Income inequality refers to the unequal distribution of income among individuals or groups. In the context of fruit traders in Medan City, income inequality means that some traders earn significantly more than others, leading to a widening gap between the rich and the poor.

Q: What are the causes of income inequality among fruit traders in Medan City?

A: The causes of income inequality among fruit traders in Medan City are complex and multifaceted. Some of the factors that contribute to income inequality include:

Lack of capital: Fruit traders with limited capital are unable to invest in their businesses, leading to lower earnings.
Unstable commodity/market prices: Fluctuations in fruit prices make it difficult for traders to predict their income, leading to uncertainty and risk.
Inadequate location: Limited land in traditional markets makes it difficult for traders to sell their products, leading to lower earnings.
Lack of cleanliness and attention of PD Market: Poor market conditions and lack of attention from market managers can lead to a decline in sales and earnings.
Number of Fruit Traders: Competition between traders in a strict market makes it difficult for traders to get buyers and increase profits.

Q: What are the consequences of income inequality among fruit traders in Medan City?

A: The consequences of income inequality among fruit traders in Medan City are severe and far-reaching. Some of the consequences include:

Poverty: Fruit traders who earn low incomes are more likely to live in poverty, which can lead to a range of negative outcomes, including poor health, limited access to education, and social exclusion.
Limited economic opportunities: Income inequality can limit economic opportunities for fruit traders, making it difficult for them to invest in their businesses, access credit, and participate in the formal economy.
Social exclusion: Income inequality can lead to social exclusion, as fruit traders who earn low incomes may be excluded from social and economic opportunities, leading to feelings of isolation and marginalization.

Q: What can be done to address income inequality among fruit traders in Medan City?

A: There are several strategies that can be employed to address income inequality among fruit traders in Medan City, including:

Increasing access to capital: Providing fruit traders with access to capital can help them invest in their businesses, increase their earnings, and reduce income inequality.
Improving market conditions: Improving market conditions, such as providing better infrastructure, increasing the availability of credit, and reducing competition, can help fruit traders increase their earnings and reduce income inequality.
Providing entrepreneurial training: Providing fruit traders with entrepreneurial training can help them develop the skills and knowledge they need to succeed in the market, increase their earnings, and reduce income inequality.
Increasing access to education: Increasing access to education can help fruit traders develop the skills and knowledge they need to succeed in the market, increase their earnings, and reduce income inequality.

Q: What role can policymakers play in addressing income inequality among fruit traders in Medan City?

A: Policymakers can play a critical role in addressing income inequality among fruit traders in Medan City by:

Developing policies that promote economic growth and development, such as increasing access to capital, improving market conditions, and providing entrepreneurial training.
Implementing policies that reduce poverty and inequality, such as increasing access to education, healthcare, and social services.
Providing support to fruit traders, such as providing credit, training, and technical assistance, to help them increase their earnings and reduce income inequality.

Q: What can be done to promote income equality among fruit traders in Medan City?

A: There are several strategies that can be employed to promote income equality among fruit traders in Medan City, including:

Increasing transparency and accountability in the market, such as providing clear and accurate information about market conditions, prices, and sales.
Encouraging collaboration and cooperation among fruit traders, such as forming cooperatives or associations to share resources, knowledge, and expertise.
Providing support to fruit traders, such as providing credit, training, and technical assistance, to help them increase their earnings and reduce income inequality.
Increasing access to education and training, such as providing fruit traders with the skills and knowledge they need to succeed in the market.