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

Authors

  • Syamsul Hidayat Pasaribu Bogor Agricultural University

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/her future of labour market experience.  

Keywords: persistent unemployment; state dependence; Heckman's estimator; Wooldridge's estimator

JEL Classifications: J64, J65, J68

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Author Biography

Syamsul Hidayat Pasaribu, Bogor Agricultural University

Ph.D from Goettingen University, GermanySenior Researcher at International Center for Applied Finance and Economics, Bogor Agricultural UniversityFaculty Member, Department of Economics, Bogor Agricultural University

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Published

2016-07-23

How to Cite

Pasaribu, S. H. (2016). Persistence of Individual Unemployment in Indonesia: Dynamic Probit Analysis from Panel SUSENAS 2008-2010. International Journal of Economics and Financial Issues, 6(3), 1239–1246. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/2511

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