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Labor-force participation rates and the informational value of unemployment rates: Evidence from disaggregated US data
Department of Economics, Uppsala University, Uppsala, Sweden; UCLS, Uppsala University, Uppsala, Sweden.
Sveriges riksbank, Sweden.ORCID iD: 0000-0002-4840-7649
2012 (English)In: Economics Letters, ISSN 0165-1765, E-ISSN 1873-7374, Vol. 116, no 3, 408-410 p.Article in journal (Refereed) Published
Abstract [en]

The informational value of the aggregate US unemployment rate has recently been questioned because of a unit root in the labor-force participation rate; the lack of mean reversion implies that long-run changes in unemployment rates are highly unlikely to reflect long-run changes in joblessness. This note shows that this critique also extends to unemployment rates for sub-populations, such as prime-aged males.

Place, publisher, year, edition, pages
Elsevier, 2012. Vol. 116, no 3, 408-410 p.
Keyword [en]
Unit-root test, Labor force participation, Unemployment dynamics
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-58332DOI: 10.1016/j.econlet.2012.04.020ISI: 000308449600039Scopus ID: 2-s2.0-84860635819OAI: oai:DiVA.org:oru-58332DiVA: diva2:1116727
Available from: 2017-06-27 Created: 2017-06-27 Last updated: 2017-10-18Bibliographically approved

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Österholm, Pär

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