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

Syamsul Pasaribu

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 3, 1239-1246

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.

Keywords: Persistent Unemployment; State Dependence; Heckman's Estimator; Wooldridge's Estimator (search for similar items in EconPapers)
JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2016-03-54

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