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

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  • Ozdemir, Zeynel / A.
  • Balcilar, Mehmet
  • Tansel, Aysit

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 University Library of Munich, Germany in its series MPRA Paper with number 40572.

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Date of creation: 09 Aug 2012
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Handle: RePEc:pra:mprapa:40572

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Keywords: Labor Force Participation Rates; Structural Change; Stationarity;

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Cited by:
  1. Ozdemir, Zeynel Abidin & Balcilar, Mehmet & Tansel, Aysit, 2011. "International Labour Force Participation Rates by Gender: Unit Root or Structural Breaks?," IZA Discussion Papers 6063, Institute for the Study of Labor (IZA).

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