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Asymmetry in the relationship between unemployment and the business cycle

Author

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  • Jorge Belaire-Franch
  • Amado Peiró

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Abstract

This study analyses asymmetries in the dynamic relationship between unemployment and the business cycle in the UK and the US. Unemployment rates present clear unconditional asymmetry in both countries. Markov switching regime models with two regimes also display clear asymmetries and show that, in the US, the effect of cyclical contractions on unemployment is much stronger than that of expansions, while in the UK it is observed that male unemployment is much more sensitive to cyclical variations than female unemployment. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Jorge Belaire-Franch & Amado Peiró, 2015. "Asymmetry in the relationship between unemployment and the business cycle," Empirical Economics, Springer, vol. 48(2), pages 683-697, March.
  • Handle: RePEc:spr:empeco:v:48:y:2015:i:2:p:683-697
    DOI: 10.1007/s00181-014-0803-0
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Celia Melguizo, 2017. "An analysis of Okun’s law for the Spanish provinces," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(1), pages 59-90, February.
    2. repec:lje:journl:v:22:y:2017:i:sp:p:199-231 is not listed on IDEAS
    3. Brincikova Zuzana & Darmo Lubomir, 2015. "The Impact of Economic Growth on Gender Specific Unemployment in the EU," Scientific Annals of Economics and Business, De Gruyter Open, vol. 62(3), pages 383-390, November.

    More about this item

    Keywords

    Business cycle; Gender; Markov switching regime model; Unemployment; E32; J64;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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