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Asymmetry and Lilien's Sectoral Shifts Hypothesis: A Quantile Regression Approach

Author

Listed:
  • Theodore Panagiotidis

    (Department of Economics, University of Macedonia, Greece; Rimini Centre for Economic Analysis, Italy)

  • Gianluigi Pelloni

    (Department of Economics, Wilfrid Laurier University, Canada; The Johns Hopkins University, SAIS-Bologna, Italy; Rimini Centre for Economic Analysis, Italy)

Abstract

This study revisits Lilien’s sectoral shifts hypothesis for the US. We employ quantile regression estimation in order to investigate the asymmetric nature of the relationship between sectoral employment and unemployment. Significant asymmetries emerge. Lilien’s dispersion index is significant only for relatively high levels of unemployment and becomes insignificant for lower levels suggesting that reallocation affects unemployment only when the latter is relative high. More job reallocation is associated with higher unemployment.

Suggested Citation

  • Theodore Panagiotidis & Gianluigi Pelloni, 2014. "Asymmetry and Lilien's Sectoral Shifts Hypothesis: A Quantile Regression Approach," Working Paper series 15_14, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:15_14
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    References listed on IDEAS

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    Cited by:

    1. Gkiourkas, Emmanouil & Panagiotidis, Theodore & Pelloni, Gianluigi, 2017. "Revisiting the macroeconomic effects of labor reallocation," Economics Letters, Elsevier, vol. 158(C), pages 88-93.

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    More about this item

    Keywords

    unemployment; employment reallocation; sectoral shifts; aggregate shocks; conditional quantile regression model; bootstrapping;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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