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Labor-force participation rates and the informational value of unemployment rates: Evidence from disaggregated US data

  • Gustavsson, Magnus
  • Österholm, Pär

The informational value of the aggregate US unemployment rate has recently been questioned because of a unit root in the labor-force participation rate; the lack of mean reversion implies that long-run changes in unemployment rates are highly unlikely to reflect long-run changes in joblessness. This note shows that this critique also extends to unemployment rates for sub-populations, such as prime-aged males.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 116 (2012)
Issue (Month): 3 ()
Pages: 408-410

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Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:408-410
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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