Analysis on Relationship between Pure Income Polarization and Economic Changes

Polarization is examined from the viewpoint of clustering of peoples throughout local pillars and inside-cluster designation. The principal impact of the workforce position is greater essential than each of the other indicators in assessing dissimilarities in earning. Research on the matter of earning bipolarization is an essential aspect however ignored dimension of earning dispersion. The objective of this paper is to examine the relationship between pure income polarization and economic change. This research is an explanatory research using quantitative approach for primary data collection to explain the role of economic change to influence pure income polarization in the Northern Area of Peninsula Malaysia encompassing Sungai Petani, Northeast of Penang and Kinta, Perak. Survey using questionnaire were conducted on 434 respondents in the year 2016. Probability sampling technique utilized was a stratified sampling according to the race group of Malaysian citizens namely Malay Chinese and Indian. Questionnaire filled through self-administered and filled by researcher. Economic change through scatter plot shows no relationship with pure income polarization. However, through correlation analysis the two variables showed a moderate positive association.