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The Applicability of the Sectoral Shift Hypothesis in the Netherlands

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Author Info
Ivo De Loo (Open University of the Netherlands)
Abstract

The sectoral shift hypothesis in the Netherlands cannot be easily tested for the presence of rigorous structural breaks in the data. Therefore, a Kalman Filter approach is adopted. What we find, is that the variables capturing the sectoral shift hypothesis are the most important in explaining Dutch unemployment behavior during the postwar period. This means that cyclical unemployment in the Netherlands can be viewed as a fluctuation of the natural rate of unemployment.

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Publisher Info
Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

Volume (Year): III (2000)
Issue (Month): (May)
Pages: 57-69
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Handle: RePEc:cem:jaecon:v:3:y:2000:n:1:p:57-69

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Related research
Keywords: unemployment sectoral shift hypothesis

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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  1. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-93, August. [Downloadable!] (restricted)
  2. Garcia-Ferrer, Antonio, et al, 1987. "Macroeconomic Forecasting Using Pooled International Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 53-67, January.
  3. Fortin, Mario & Araar, Abdelkrim, 1997. "Sectoral Shifts, Stock Market Dispersion and Unemployment in Canada," Applied Economics, Taylor and Francis Journals, vol. 29(6), pages 829-39, June. [Downloadable!] (restricted)
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  4. Mills, Terence C. & Pelloni, Gianluigi & Zervoyianni, Athina, 1996. "Cyclical unemployment and sectoral shifts: Further tests of the Lilien hypothesis for the UK," Economics Letters, Elsevier, vol. 52(1), pages 55-60, July. [Downloadable!] (restricted)
  5. Mills, Terence C & Pelloni, Gianluigi & Zervoyianni, Athina, 1997. "Unemployment Fluctuations in the UK: 1958-92," Applied Economics Letters, Taylor and Francis Journals, vol. 4(4), pages 253-55, April. [Downloadable!] (restricted)
  6. Barro, Robert J, 1977. "Unanticipated Money Growth and Unemployment in the United States," American Economic Review, American Economic Association, vol. 67(2), pages 101-15, March.
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