摘要：This paper investigates the persistence of unemployment in Indonesia, by decomposing unemployment into structural and cyclical unemployment and exploring its determinants and dynamics. The result shows that currently Indonesia is experiencing structural unemployment, which is caused by structural change of Indonesian economy. Factors contributing to the structural unemployment include sectoral labor productivity and sectoral real wage, beside specific skill required by the sectors. The study reveals the need for a good economic planning to avoid unemployment in the future.
