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Are Labor Force Participation Rates Really Non-Stationary? Evidence from Three OECD Countries

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  • Ozdemir, Zeynel Abidin

    ()
    (Gazi University)

  • Balcilar, Mehmet

    ()
    (Eastern Mediterranean University)

  • Tansel, Aysit

    ()
    (Middle East Technical University)

Abstract

This paper shows that the structural breaks are an important characteristic of the monthly labor force participation rate (LFPR) series of Australia, Canada and the USA. Therefore we allow for endogenously determined multiple structural breaks in the empirical specifications of fractionally integrated ARMA model. The findings indicate that contrary to the previous research the LFPRs of Australia, Canada and the USA are stationary implying that the informational value of the unemployment rates about the behavior of labor markets and the causes of joblessness are useful.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6776.

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Length: 22 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6776

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Keywords: labor force participation rates; structural change; stationarity;

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Cited by:
  1. Zeynel Abidin Ozdemir & Mehmet Balcilar & Aysit Tansel, 2011. "International Labour Force Participation Rates by Gender: Unit Root or Structural Breaks?," Working Papers 2011/8, Turkish Economic Association.

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