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Unemployment And Labor Force Participation: A Panel Cointegration Analysis For European Countries

Listed author(s):
  • Ozerkek, Y.
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    This paper investigates the long-run relationship between unemployment and labor force participation and analyzes the existence of added/discouraged worker effect, which has potential impact on economic growth and development. Using panel cointegration techniques for a panel of European countries (1983-2009), the empirical results show that this long-term relation exists for only females and there is discouraged worker effect for them. Thus, female unemployment is undercount.

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    Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

    Volume (Year): 13 (2013)
    Issue (Month): 1 ()
    Pages: 67-76

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    Handle: RePEc:eaa:aeinde:v:13:y:2013:i:1_6
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    1. Emerson, Jamie, 2011. "Unemployment and labor force participation in the United States," Economics Letters, Elsevier, vol. 111(3), pages 203-206, June.
    2. Gustavsson, Magnus & Osterholm, Par, 2006. "The informational value of unemployment statistics: A note on the time series properties of participation rates," Economics Letters, Elsevier, vol. 92(3), pages 428-433, September.
    3. Jacob Mincer, 1962. "Labor Force Participation of Married Women: A Study of Labor Supply," NBER Chapters, in: Aspects of Labor Economics, pages 63-105 National Bureau of Economic Research, Inc.
    4. Westerlund, Joakim, 2005. "Testing for Error Correction in Panel Data," Working Papers 2005:11, Lund University, Department of Economics.
    5. Agbola, F. W., 2005. "Integrating Hidden Unemployment in the Measurement of Unemployment in Selected OECD Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(2).
    6. Österholm, Pär, 2010. "Unemployment and labour-force participation in Sweden," Economics Letters, Elsevier, vol. 106(3), pages 205-208, March.
    7. Pesaran, M.H., 2003. "A Simple Panel Unit Root Test in the Presence of Cross Section Dependence," Cambridge Working Papers in Economics 0346, Faculty of Economics, University of Cambridge.
    8. Makoto Kakinaka & Hiroaki Miyamoto, 2011. "Unemployment and Labor Force Participation in Japan," Working Papers EMS_2011_15, Research Institute, International University of Japan.
    9. Kristin Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 141-164, Fall.
    10. Murphy, Kevin M & Topel, Robert H, 1997. "Unemployment and Nonemployment," American Economic Review, American Economic Association, vol. 87(2), pages 295-300, May.
    11. Westerlund, Joakim & Edgerton, David L., 2007. "A panel bootstrap cointegration test," Economics Letters, Elsevier, vol. 97(3), pages 185-190, December.
    12. Aysit Tansel, 2001. "Economic Development and Female Labor Force Participation in Turkey: Time-Series Evidence and Cross-Province Estimates," ERC Working Papers 0105, ERC - Economic Research Center, Middle East Technical University, revised May 2001.
    13. Stuart O. Schweitzer & Ralph E. Smith, 1974. "The Persistence of the Discouraged Worker Effect," ILR Review, Cornell University, ILR School, vol. 27(2), pages 249-260, January.
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