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Examining the Unemployment Invariance Hypothesis: The Case of Australia

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  • Phuong Nguyen Van

Abstract

type="main" xml:lang="en"> This article examines the long-run relationship between the unemployment rate and the labour force participation rate in Australia. Using cointegration analysis, I find that there is no long-run relationship between these two variables in Australia. This finding supports the unemployment invariance hypothesis. The result is consistent with an empirical study of the United Kingdom but differs from the results in empirical studies for Sweden, the United States and Japan.

Suggested Citation

  • Phuong Nguyen Van, 2016. "Examining the Unemployment Invariance Hypothesis: The Case of Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 49(1), pages 54-58, March.
    • Handle: RePEc:bla:ausecr:v:49:y:2016:i:1:p:54-58
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    Cited by:

    1. Liu, De-chih, 2021. "The Unemployment Invariance Hypothesis: Does the Gender Matter?," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 62(2), pages 178-199, December.
    2. Aysit Tansel & Zeynel Abidin Ozdemir, 2016. "Unemployment Invariance Hypothesis, Added and Discouraged Worker Effects in Canada?," ERC Working Papers 1717, ERC - Economic Research Center, Middle East Technical University, revised Dec 2017.
    3. Maridueña-Larrea, Ángel & Martín-Román, Ángel, 2023. "The unemployment invariance hypothesis and the implications of added and discouraged worker effects in Latin America," GLO Discussion Paper Series 1224, Global Labor Organization (GLO).
    4. Aysit Tansel & Zeynel Abidin Ozdemir, 2018. "Unemployment invariance hypothesis, added and discouraged worker effects in Canada," International Journal of Manpower, Emerald Group Publishing Limited, vol. 39(7), pages 929-936, October.

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