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Asymmetry and Lilien’s Sectoral Shifts Hypothesis: A Quantile Regression Approach

Author

Listed:
  • Theodore Panagiotidis

    (University of Macedonia
    Rimini Centre for Economic Analysis)

  • Gianluigi Pelloni

    (Wilfrid Laurier University
    John Hopkins University, SAIS-Bologna
    Rimini Centre for Economic Analysis)

Abstract

This study revisits Lilien’s sectoral shifts hypothesis for the US. We employ quantile regression estimation in order to investigate the asymmetric nature of the relationship between sectoral employment and unemployment. Significant asymmetries emerge. Lilien’s dispersion index is significant only for relatively high levels of unemployment and becomes insignificant for lower levels suggesting that reallocation affects unemployment only when the latter is relative high. More job reallocation is associated with higher unemployment

Suggested Citation

  • Theodore Panagiotidis & Gianluigi Pelloni, 2014. "Asymmetry and Lilien’s Sectoral Shifts Hypothesis: A Quantile Regression Approach," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 6(1), pages 68-86, June.
    • Handle: RePEc:ren:journl:v:6:y:2014:i:1:p:68-86
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    References listed on IDEAS

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    Cited by:

    1. Gkiourkas, Emmanouil & Panagiotidis, Theodore & Pelloni, Gianluigi, 2017. "Revisiting the macroeconomic effects of labor reallocation," Economics Letters, Elsevier, vol. 158(C), pages 88-93.

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    More about this item

    Keywords

    Unemployment; Employment Reallocation; Sectoral Shifts; Aggregate Shocks; Conditional Quantile Regression Model; Bootstrapping;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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