Advanced Search
MyIDEAS: Login

Unemployment, Gender and Labor Force Participation in Spain: Future Trends in Labor Market

Contents:

Author Info

  • Congregado, Emilio

    ()
    (Department of Economics, University of Huelva, Spain.)

  • Carmona, Monica

    ()
    (Department of Management and Marketing, University of Huelva (Spain))

  • Golpe, Antonio A.

    ()
    (Department of Economics, University of Huelva, Spain.)

  • Van Stel, André

    ()
    (University of Amsterdam, Faculty of Economics and Business, Department of Economics, Address Roetersstraat 11, 1018 WB Amsterdam, the Netherlands)

Abstract

quarter of 2012, almost three percentage points higher than one year earlier and almost 12 percentage points higher than at the end of 2008. Although the exponential growth of Spanish unemployment is mainly caused by a lower demand for labor, there is also a second cause, viz. an increased supply of labor, reflected by higher participation rates. In this paper we investigate how participation rates are affected by business cycle fluctuations, while accounting for different labor market behaviour of men and women. Based on an analysis using Spanish quarterly data over the period 1976-2012, we find evidence for a linear discouraged worker effect for men (i.e., decreasing participation rates during recessions), implying that male participation rates will continue to show a weak but sustained decrease as long as unemployment keeps rising. On the contrary, we find a significant ‘added’ worker effect (i.e., increasing participation rates during recessions) for women, but only when unemployment rates are below a certain threshold. Since the Spanish unemployment rate just recently (in 2012) passed this threshold, our results suggest that the added worker effect for women no longer applies and that, accordingly, the recent increase in female participation rates now comes to an end.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ipe.ro/rjef/rjef1_14/rjef1_2014p53-66.pdf
Download Restriction: no

Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): (2014)
Issue (Month): 1 (March)
Pages: 53-66

as in new window
Handle: RePEc:rjr:romjef:v::y:2014:i:1:p:53-66

Contact details of provider:
Postal: Casa Academiei, Calea 13, Septembrie nr.13, sector 5, Bucureşti 761172
Phone: 004 021 3188148
Fax: 004 021 3188148
Email:
Web page: http://www.ipe.ro/
More information through EDIRC

Related research

Keywords: discouraged worker effect; added worker effect; non-linearity; Spain;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Samuel Bentolila & Juan F. Jimeno, . "Spanish Unemployment: The End of the Wild Ride?," Working Papers 2003-10, FEDEA.
  2. Lo, Ming Chien & Zivot, Eric, 2001. "Threshold Cointegration And Nonlinear Adjustment To The Law Of One Price," Macroeconomic Dynamics, Cambridge University Press, vol. 5(04), pages 533-576, September.
  3. Hernanz, Virginia & Jimeno, Juan Francisco & Kugler, Adriana D., 2003. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labour Market Reforms," CEPR Discussion Papers 3724, C.E.P.R. Discussion Papers.
  4. Juan J. Dolado & Juan F. Jimeno, . "The causes of Spanish unemployment: A structural VAR apporach," Working Papers 96-19, FEDEA.
  5. Namkee Ahn & Pedro Mira, . "Labor Force Participation and Retirement of Spanish Older Men: Trends and Prospects," Working Papers 2000-25, FEDEA.
  6. Serena Ng & Pierre Perron, 2001. "LAG Length Selection and the Construction of Unit Root Tests with Good Size and Power," Econometrica, Econometric Society, vol. 69(6), pages 1519-1554, November.
  7. Carlo Altavilla & Antonio Garofalo & Concetto Paolo Vinci, 2005. "Is the Discouraged Worker Effect Time-Varying?," CELPE Discussion Papers 97, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  8. Clark, Kim B & Summers, Lawrence H, 1982. "Labour Force Participation: Timing and Persistence," Review of Economic Studies, Wiley Blackwell, vol. 49(5), pages 825-44, Special I.
  9. Kim B. Clark & Lawrence H. Summers, 1980. "Demographic Differences in Cyclical Employment Variation," NBER Working Papers 0514, National Bureau of Economic Research, Inc.
  10. Goodman, John L, Jr, 1974. "Spectral Analysis of the Dependence of Labor Force Participation on Unemployment and Wages," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 390-93, August.
  11. Congregado, Emilio & Golpe, Antonio A. & van Stel, André, 2011. "Exploring the big jump in the Spanish unemployment rate: Evidence on an 'added-worker' effect," Economic Modelling, Elsevier, vol. 28(3), pages 1099-1105, May.
  12. Prieto-Rodríguez, Juan & Rodríguez-Gutiérrez, César, 2000. "Participation of Married Women in the Labour Market and the 'Added Worker Effect' in Europe," IRISS Working Paper Series 2000-12, IRISS at CEPS/INSTEAD.
  13. Alfred Tella, 1964. "The relation of labor force to employment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 17(3), pages 454-469, April.
  14. Balke, Nathan S & Fomby, Thomas B, 1997. "Threshold Cointegration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 627-45, August.
  15. Blanchard, Olivier & Jimeno, Juan F, 1995. "Structural Unemployment: Spain versus Portugal," American Economic Review, American Economic Association, vol. 85(2), pages 212-18, May.
  16. Benati, Luca, 2001. "Some empirical evidence on the 'discouraged worker' effect," Economics Letters, Elsevier, vol. 70(3), pages 387-395, March.
  17. Darby, Julia & Hart, Robert A. & Vecchi, Michela, 2001. "Labour force participation and the business cycle: a comparative analysis of France, Japan, Sweden and the United States," Japan and the World Economy, Elsevier, vol. 13(2), pages 113-133, April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:rjr:romjef:v::y:2014:i:1:p:53-66. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Corina Saman).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.