A new era in Indonesian labor policy has begun with the recent passage of Law Number 11 2020 on Job Creation. The modifies dozens legislations to make business performance easier and strengthen national investment climate. In doing so, deregulated some key law policies, reducing previous rights formerly governed by 13 2003 Manpower. Creation also seems increase market flexibility. It makes busi...

We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their job can be hit by a technological shock, which decreases their productivity. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages are willing to live closer to jobs ...