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The unemployment structure of the US states

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  • Clemente, Jesus
  • Lanaspa, Luis
  • Montanes, Antonio

Abstract

This paper analyses the time series properties of the unemployment rates of the 50 US States, as well as the global rate of the USA. Our results, based on the use of ADF-type tests, show that the inclusion of some breaks is vital in order to reduce the persistence on these rates. Thus, we can reject the unit root null hypothesis versus a double mean-shifted stationary alternative for 46 States and for the US total rate. We also find that the behavior of this latter rate is not congruent with that of the States, implying the presence of some aggregation problems which have not been commonly accounted in the literature.

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Bibliographic Info

Article provided by Elsevier in its journal The Quarterly Review of Economics and Finance.

Volume (Year): 45 (2005)
Issue (Month): 4-5 (September)
Pages: 848-868

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Handle: RePEc:eee:quaeco:v:45:y:2005:i:4-5:p:848-868

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Web page: http://www.elsevier.com/locate/inca/620167

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References

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Citations

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Cited by:
  1. Mark J. Holmes & Jesús Otero & Theodore Panagiotidis, 2013. "Modelling the Behaviour of Unemployment Rates in the US over Time and across Space," Working Paper Series, The Rimini Centre for Economic Analysis 39_13, The Rimini Centre for Economic Analysis.
  2. Gomes, Fábio Augusto Reis & da Silva, Cleomar Gomes, 2009. "Hysteresis versus NAIRU and convergence versus divergence: The behavior of regional unemployment rates in Brazil," The Quarterly Review of Economics and Finance, Elsevier, Elsevier, vol. 49(2), pages 308-322, May.
  3. Dionisio Ramirez & Gabriel Rodríguez, 2013. "Do Labor Reforms in Spain have an Effect on the Equilibrium Unemployment Rate?," Documentos de Trabajo, Departamento de Economía - Pontificia Universidad Católica del Perú 2013-367, Departamento de Economía - Pontificia Universidad Católica del Perú.
  4. Cevik, Emrah Ismail & Dibooglu, Sel, 2013. "Persistence and non-linearity in US unemployment: A regime-switching approach," Economic Systems, Elsevier, vol. 37(1), pages 61-68.
  5. Andréa Zaitune Curi & Naércio Aquino Menezes-Filho, 2005. "A Relação Entre O Desempenho Escolar E Os Salários No Brasil," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of 158, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  6. Giorgio Canarella & Stephen M. Miller & Stephen K. Pollard, 2013. "Unemployment Rate Hysteresis and the Great Recession: Exploring the Metropolitan Evidence," Working papers 2013-19, University of Connecticut, Department of Economics.
  7. Franchi, Massimo & Ordóñez, Javier, 2008. "Common smooth transition trend-stationarity in European unemployment," Economics Letters, Elsevier, vol. 101(2), pages 106-109, November.
  8. Fábio Augusto Reis Gomes & Cleomar Gomes da Silva, 2006. "Hysteresis Vs. Nairu And Convergence Vs. Divergence: The Behavior Of Regional Unemployment Rates In Brazil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of G 161, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

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