Unemployment and labor force participation in the United States

Emerson, Jamie

doi:10.1016/j.econlet.2011.02.022

Cited by 50 publications

(72 citation statements)

References 7 publications

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“…Therefore, we conclude that unemployment invariance hypothesis is not supported in Canada. This result is similar to the Karanassou and Snower (2004) for the United Kingdom, Österholm (2010) for Sweden, Emerson (2011) for the United States and Kakinaka and Miyamoto (2012) for Japan (male sample) where unemployment invariance hypothesis is not supported. However these studies contradict Layard, Nickell and Jackman (1991) in the United Kingdom, Tansel et al (2016) in Turkey, Otoiu and Titan (2015) in Romania and Van (2016) Australia where there is no long-run equilibrium relation between labor force participates and unemployment rates and therefore unemployment invariance hypothesis is supported.…”

Section: Resultssupporting

confidence: 70%

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Does Unemployment Invariance Hypothesis Hold for Canada?

2016

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This article explores the long-run relationship between unemployment rate and labor force participation rate in Canada. The cointegration analysis vindicates the existence of a long-run relationship between these two variables. This finding leads us to doubt the pertinence of the unemployment invariance hypothesis for Canada. This is consistent with the empirical studies for Japan, Sweden and the United States, but contradicts the empirical studies for Australia, Romania and Turkey. There are contradictory studies for the United Kingdom.

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Section: Resultssupporting

confidence: 70%

“…There are contradictory evidence in more recent studies. Österholm (2010) for Sweden, Emerson (2011) for the United States, Kakinaka and Miyamoto (2012) (for males only) and Liu (2014) (from a regional perspective) for Japan do not find support for unemployment invariance hypothesis.…”

Section: Introduction and Literature Reviewmentioning

confidence: 88%

Does Unemployment Invariance Hypothesis Hold for Canada?

2016

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“…For instance, Emerson (2011) finds a long-run relationship between LFPR and the unemployment rate for the United States. Kakinaka et al (2012) explore a cointegration relationship between LFPR and the unemployment rate for the male and fail to reject the null for the female workers over the Japanese economy.…”

Section: Introductionmentioning

confidence: 99%

Modelling Nonlinear Behavior of Labor Force Participation Rate by Star: An Application for Turkey

cengiz,

Sahin

2013

SSRN Journal

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During the economic crisis periods, due to the discouraged worker and added worker effects, we may not gather healthy information from the unemployment rates concerning the labor market. For this reason, it is claimed in the literature that the Labor Force Participation Rate (LFPR) may be a better indicator than the unemployment rate during the economic crises. When the time series data exhibits asymmetry and nonlinearity during the recessions, the LFPR tends to diminish. Following, the unemployment rate may decrease because of the diminishment in LFPR. To add more, it may not reflect the actual aspects of the market. As a result while considering the unemployment rate we should also observe the LFPR. The participation decision of labor in the course of shocks depends on the coherence of the labor market to the fluctuations. On the other hand, during the expansions, the LFPR increases gradually. The behavior and the univariate properties of the LFPR also vary differently considering the gender non-similarities.

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“…Liu (2014) complemented the research for Japanese economy considering the possibility of multiple structural breaks for panel data from a regional perspective. Emerson (2011) was modelling interrelation between the labour force participation rate and UR for the USA historical data. Scientists state that high unemployment rate during recession can force people to refuse from job searching, because in such periods job searching costs may prevail over an employment benefits (Benati, 2001).…”

Section: Data and Empirical Analysismentioning

confidence: 99%

Evidence of Asymmetries and Nonlinearity of Unemployment and Labour Force Participation Rate in Ukraine

Lukianenko¹,

Oliskevych²

2017

Prague Economic Papers

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With respect to instability and structural changes for maintaining effective functioning of economy an important issue is to study the dynamics of processes in the labour market, including labour supply and employment. Considering negative demographic trends and an acute problem of population aging in Ukraine the article presents an empirical research of the dynamics of labour force participation and unemployment rate, as well as the correlation relationship between them in various periods of time. On the basis of threshold-disturbance moving average and threshold-disturbance autoregressive models there are elicited significant asymmetric reactions of labour force participation rate, unemployment rate and productivity to positive and negative macroeconomic shocks. For modelling the asymmetric behaviour of economic activity of population there is developed a nonlinear logistic smooth transition autoregressive model. In the result of econometric analysis there is received large estimated value of slope parameter which characterizes the smoothness of transition. This indicates that the economic activity of the population in Ukraine quickly reacts to the previous changes that took place in the labour market. In times of crisis Ukrainian households increase labour supply and show increased activity in job search in order to prevent the decline of their income.

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Unemployment and labor force participation in the United States

Cited by 50 publications

References 7 publications

Does Unemployment Invariance Hypothesis Hold for Canada?

Does Unemployment Invariance Hypothesis Hold for Canada?

Modelling Nonlinear Behavior of Labor Force Participation Rate by Star: An Application for Turkey

Evidence of Asymmetries and Nonlinearity of Unemployment and Labour Force Participation Rate in Ukraine

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