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Persistence of Individual Unemployment in Indonesia: Dynamic Probit Analysis from Panel SUSENAS 2008-2010

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  • Syamsul Hidayat Pasaribu

    (Department of Economics and International Center for Applied Finance and Economics (InterCAFE), Bogor Agricultural University, Indonesia)

Abstract

This paper presents a dynamic probit analysis of individual unemployment incidence using a panel survey on the national socio-economy (SUSENAS), 2008-2010. It compares a variety of dynamic random effects estimators, particularly focusing on the Heckman's (1981) and Wooldridge's (2005) approaches. The main result shows a strong evidence of persistence or state dependence of individual unemployment in Indonesia and therefore consistent with the theory of scar unemployment. This means that a person's unemployment experience has an implication to his his/her future of labour market experience.

Suggested Citation

  • Syamsul Hidayat Pasaribu, 2016. "Persistence of Individual Unemployment in Indonesia: Dynamic Probit Analysis from Panel SUSENAS 2008-2010," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1239-1246.
    • Handle: RePEc:eco:journ1:2016-03-54
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    2. Selcuk GEMICIOGLU & Hasan SAHIN, 2023. "Unemployment Persistence in The Turkish Labor Market," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 181-211, January.

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    More about this item

    Keywords

    Persistent Unemployment; State Dependence; Heckman's Estimator; Wooldridge's Estimator;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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