PEMODELAN PERSENTASE PENDUDUK MISKIN KABUPATEN/KOTA DI PROVINSI JAWA TENGAH MENGGUNAKAN REGRESI DATA PANEL

Abstract

Panel data regression is a regression for panel data which is a composite of cross-section data and time-series data. To estimate panel data regression model, there are three approaches, namely the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). This study aims to estimate the panel data regression of city’s/regency’s poor population percentage in Central Java province during 2009-2013 period. Poor population percentage is the percentage of population below of poverty line. The appropriate regression model that is obtained through hypothesis test is Random Effect Model (REM). The model shows that the number of population, Regency/City Minimum Wage, and Adult Literacy Rate significantly affect the poor population percentage amounted to 44,61%. Keywords: Panel Data Regression, Random Effect Model, Poverty of Central Java