Labor-force participation rates and the informational value of unemployment rates: Evidence from disaggregated US data
2012 (English)In: Economics Letters, ISSN 0165-1765, Vol. 116, no 3, 408-410 p.Article in journal (Refereed) Published
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. (C) 2012 Elsevier B.V. All rights reserved.
Place, publisher, year, edition, pages
2012. Vol. 116, no 3, 408-410 p.
Unit-root test, Labor force participation, Unemployment dynamics
IdentifiersURN: urn:nbn:se:uu:diva-183767DOI: 10.1016/j.econlet.2012.04.020ISI: 000308449600039OAI: oai:DiVA.org:uu-183767DiVA: diva2:564597