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International Labour Force Participation Rates by Gender: Unit Root or Structural Breaks?

  • Aysit Tansel

    ()

    (Department of Economics, Middle East Technical University)

  • Zeynel Abidin Ozdemir

    ()

    (Department of Economics, Gazi University)

  • Mehmet Balcilar

    ()

    (Department of Economics, Eastern Mediterranean University)

This paper examines the possibility of unit roots in the presence of endogenously determined multiple structural breaks in the total, female and male labour force participation rates (LFPR) for Australia, Canada and the USA. We extend the procedure of Gil-Alana (2008) for single structural break to the case of multiple structural breaks at endogenously determined dates using the principles suggested by Bai and Perron (1998). We use the Robinson (1994) LM test to determine the fractional order of integration. We find that endogenously determined structural breaks render the total, female and male LFPR series stationary or at best mean-reverting.

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File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1130.pdf
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Paper provided by Koc University-TUSIAD Economic Research Forum in its series Koç University-TUSIAD Economic Research Forum Working Papers with number 1130.

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Length: 34 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:koc:wpaper:1130
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