IDEAS home Printed from https://ideas.repec.org/a/vrs/reoecp/v14y2015i4p411-426n6.html
   My bibliography  Save this article

Is the Labour Force Participation Rate Non-Stationary in Romania?

Author

Listed:
  • Tiwari Aviral Kumar

    () (Faculty of Management, IBS Hyderabad, IFHE University, Room No.: Block C- 204, Dontanpalli (Village), Shankerpalli Road, Hyderabad, A.P., Pin: 501203, India, E-mail: aviral.kr.tiwari@gmail.com)

  • Mutascu Mihai

    () (West University of Timisoara, Faculty of Economics and Business Administration, 16 J.H. Pestalozzi Street, 300115, Timisoara, Romania, and LEO (Laboratoire d'Economie d'Orléans) UMR7322, Faculté de Droit d'Economie et de Gestion, University of Orléans, Rue de Blois - B.P. 6739, 45067, Orléans, France)

Abstract

The purpose of this paper is to test hysteresis of the Romanian labour force participation rate, by using time series data, with quarterly frequency, covering the period 1999Q1-2013Q4. The main results reveal that the Romanian labour force participation rate is a nonlinear process and has a partial unit root (i.e. it is stationary in the first regime and non-stationary in the second one), the main breaking point being registered around year 2005. In this context, the value of using unemployment rate as an indicator for capturing joblessness in this country is debatable. Starting from 2005, the participation rate has not followed long-term changes in unemployment rate, the disturbances having permanent effects on labour force participation rate.

Suggested Citation

  • Tiwari Aviral Kumar & Mutascu Mihai, 2015. "Is the Labour Force Participation Rate Non-Stationary in Romania?," Review of Economic Perspectives, De Gruyter Open, vol. 14(4), pages 411-426, January.
  • Handle: RePEc:vrs:reoecp:v:14:y:2015:i:4:p:411-426:n:6
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/revecp.2014.14.issue-4/revecp-2015-0007/revecp-2015-0007.xml?format=INT
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:reoecp:v:14:y:2015:i:4:p:411-426:n:6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla). General contact details of provider: http://www.degruyteropen.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.