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Labor-Force Participation Rates and the Informational Value of Unemployment Rates: Evidence from Disaggregated US Data
Nationalekonomiska institutionen, Uppsala universitet.
Sveriges riksbank.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
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-58332OAI: oai:DiVA.org:oru-58332DiVA: diva2:1116727
Available from: 2017-06-27 Created: 2017-06-27 Last updated: 2017-06-28

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Citation style
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