Application of Dummy Regression to Estimate the Income of the Working Population in East Lombok

Abstract

This research was carried out at the Central Bureau of Statistics in East Lombok between October 7 and November 20, 2024, aiming to explore the determinants of individual income within the region. The study utilized secondary data, specifically drawn from the National Labor Force Survey (Sakernas). It investigates how variables such as sex, age, marital status, level of education, working hours, job status, industry sector, and job type contribute to the income levels of workers in East Lombok. The analysis produced a regression model capable of estimating income based on the aforementioned factors. The model achieved a coefficient of determination of 0.747, suggesting a moderately strong relationship between the predictor variables and income as the outcome variable. Furthermore, the results indicate that 52.1% of income variation is explained by the variables included in the model, while the remaining 47.9% is attributable to external influences not captured in this study. Overall, this study offers valuable insight into the key factors shaping income in East Lombok and may serve as a useful reference for policymakers aiming to enhance community welfare and address poverty reduction in the area.