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

  • Zeynel Abidin Ozdemir

    ()

    (Department of Econimics, Gazi University Turkey)

  • Mehmet Balcilar

    ()

    (Department of Econimics, Eastern Mediterranean University Turkish Republic of Northern Cyprus)

  • Aysit Tansel

    ()

    (Department of Economics, METU)

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://www.erc.metu.edu.tr/menu/series11/1105.pdf
File Function: First version, 2011
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Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 1105.

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Length: 31 pages
Date of creation: Oct 2011
Date of revision: Oct 2011
Handle: RePEc:met:wpaper:1105
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