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Sectoral Shifts and Canadian Unemployment

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  • Neelin, Janet

Abstract

In this paper Lilien's (1982) hypothesis that sectoral shifts in employment raise aggregate unemployment is tested using Canadian quarterly data. Lilien's framework is extended to investigate regional labour market rigidities and to distinguish between industry shifts that are correlated with changes in aggregate activity, and those which are exogenous to the overall level of activity. The robustness of the results to various changes in model specification is also investigated. I find that in Canada exogenous shifts in employment between sectors do not have a significant effect on the aggregate unemployment rate.
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Suggested Citation

  • Neelin, Janet, 1987. "Sectoral Shifts and Canadian Unemployment," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 718-723, November.
  • Handle: RePEc:tpr:restat:v:69:y:1987:i:4:p:718-23
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    References listed on IDEAS

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    1. Robert J. Shiller, 1984. "Stock Prices and Social Dynamics," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, pages 457-510.
    2. Arrow, Kenneth J, 1982. "Risk Perception in Psychology and Economics," Economic Inquiry, Western Economic Association International, vol. 20(1), pages 1-9, January.
    3. Robert J. Shiller, 1984. "Stock Prices and Social Dynamics," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, pages 457-510.
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    Cited by:

    1. Francesco Pastore & Joanna Tyrowicz, 2013. "Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data," Working Papers 2013-18, Faculty of Economic Sciences, University of Warsaw.
    2. Giovanni Gallipoli & Gianluigi Pelloni, 2013. "Macroeconomic Effects of Job Reallocations: A Survey," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 5(2), pages 127-176, December.
    3. repec:rim:rimwps:27-08 is not listed on IDEAS
    4. Pastore, Francesco, 2013. "Primum vivereā€¦ Industrial Change, Job Destruction and the Geographical Distribution of Unemployment," IZA Discussion Papers 7126, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection

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