ABSTRAC
The problem of internal and international migration is still faced by Indonesian government until the recent year. The internal migration problem is related to the concentration of migration in Java as a destination region, even though this region has high population and unemployment. The problem of international migration is caused by the high demand of professional migrant of the destination country. Some of internal and international migration policies have been regulated by the government to handle the problem.
The main purpose of internal and international migration policies in Indonesia is to solve population distribution and labor market problem and improve economic condition in Indonesia. The objectives of this research are: (1) to describe the pattern of internal and international migration, labor market and Indonesian economy, (2) to analyze the factors that influence internal and international migration in Indonesia, and (3) to forecast the ex-ante (2009-2012) impact of some alternatives internal and international migration policies on labor market and Indonesian economy.
To reach these objectives, a simultaneous equations model containing 58 structural equations and 30 identities equations are constructed. The analysis use time series 1985-2006 data. Model was estimated by 2SLS method and the SYSLIN procedure. Forecasting simulation used the Newton method and the SIMNLIN procedure.
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