Published date: Jul 31 2024

Journal Title: KnE Social Sciences

Issue title: The 3rd International Conference on Business, Economics, and Sustainability Science (BESS 2023)

Pages: 510–527

DOI: 10.18502/kss.v9i21.16758

Sisca Gustina SariDepartment of Management, Faculty of Economic, Universitas Negeri Malang

Inayati Nuraini Dwiputriinayati.dwiputri.fe@um.ac.idDepartment of Management, Faculty of Economic, Universitas Negeri Malang

Wahjoedi ‎ Department of Management, Faculty of Economic, Universitas Negeri Malang

Siti ParhahDepartment of Management, Faculty of Economic and Business, Universitas Pendidikan Indonesia

The successive economic development can be seen from unemployment rate. The percentage of the unemployment rate to the labor force can be seen through the value of the open unemployment rate. From 2016 to 2019, young people have always been the highest contributor to Indonesia’s open unemployment rate. This study discusses the variables that affect the open unemployment rate for rural and urban youth in Indonesia in 2016–2019. The variables are population growth rate, population per capita expenditure, average length of schooling, youth working based on the highest education completed are secondary school, provincial minimum wage, registered job seekers, foreign investment, and gross regional domestic product. This study uses panel data regression method with the Random Effect Model. The results showed that the variable that had a significant effect on the open unemployment rate of rural youth was the gross regional domestic product. Meanwhile, the variables that have a significant effect on the open unemployment rate of urban youth are registered job seekers and foreign investment.

Keywords: youth unemployment, rural–urban, random effect model

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