Modeling of Employment Participation Rate Against the Percentage of Poor Population in East Java in 2023 Using B-Spline Method

Abstract

Poverty is a common issue in Indonesia. Data on the Percentage of Poor Population against the Labor Force Participation Rate (LFPR) per district/city, consisting of 38 districts/cities in East Java Province in 2023, indicates that the highest percentage of poverty in East Java Province in 2023 was 21,760. Employment is considered the most effective solution to alleviate poverty. The data in this study shows a distribution pattern that does not form a specific pattern, making it difficult to analyze using parametric methods. Therefore, the appropriate approach is Nonparametric Regression. In this study, the nonparametric regression used is the B-Spline regression model. The suitability of the model is based on the Mean Squared Error (MSE) value of the model. The analysis results indicate that the B-Spline regression model achieves an MSE value of 20.11447. The optimal MSE value is obtained from B-Spline estimation with order 2. This suggests that the B-Spline method provides a good explanation in addressing the issue