Unemployment And Labor Force Participation: A Panel Cointegration Analysis For European Countries
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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Volume (Year): 13 (2013)
Issue (Month): 1 ()
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