ABSTRAK
The study analyzed the behavior of the labor force participation in the labor market, and the impact of occupational mismatch to the decision of workers continued to. Job search even they have employed by using The Job Search Model.
However, the application of the Job Search Model to deal with the characteristics of labor market today, i.e. the highly of disguised unemployment, the gap in labor market, the increasing mobility of workers from informal to. Formal sector the education attainment of job searchers increased rapidly, and some phenomena?s of the occupational mismatch and on-the job-search.
The raw data in the study used the data SUPAS 1985 (Intercensal Population Survey 1985) was conducted by Biro Pusat Statistik (Central Statistic Bureau) especially for South Sulawesi province. The labor force in this sample amount 23,967 and out of these only 9,982 employed and remains still unemployed.
In The Job Search Model or Search Theory argued that to analyzed individual decision to participate in the labor market or to analyzed the returns could be obtain during job searching process could be measured by using the reservation wage they received after deducted from the expenses they spend during job searching activities. Empirically, the reservation wage was influenced by the individual characteristic and the other factors that engage in labor market. The decision of job searchers whether they will accept or rejected each job that offered to them it will be influenced by individual characteristic and another factors as mentioned above.
Since the data above not available in the Intercensal Population Survey 1985, this study will emphasize on job searching which influences by individual characteristic (namely, education level, marital and migrant status, age and residence) and labor market characteristic.
The types of occupation, which a proxy of wage, categorized into professional, white collar, blue collar and others. For analysis purposes, all the categorized was assume "stratum". It's means that the workers who have job searching, will be consider a higher job levels or at least at the same level only.
By-using Multinomial Logit Model, it's conclude that the higher level of education workers, the probability to achieved blue collar and others tend to decrease, while probability to achieved white collar and professional tend to increase. The average probability to keep engage in this job concentrated more on farmer and menial workers (others). Another conclusion, which have participated in the same job category, the probability of higher education workers to get higher or the same of job level was higher if compared to lower education workers.