Regional and Sectoral Evidence of the Macroeconomic Effects of Labor Reallocation: A Panel Data Analysis

Dimitrios Bakas, Theodore Panagiotidis and Gianluigi Pelloni

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: This paper re-examines Lilien s sectoral shifts hypothesis for U.S. unemployment. We employ a monthly panel that spans from 1990:01 to 2011:12 for 48 U.S. states. Panel unit root tests that allow for crosssectional dependence reveal the stationarity of unemployment. Within a framework that takes into account dynamics, parameter heterogeneity and cross-sectional dependence in the panel, we show that sectoral reallocation is significant not only at the aggregate level but also at the state level. The magnitude and the statistical significance of the latter as measured by Lilien s index increases when both heterogeneity and cross-sectional dependence are taken into account.

JEL-codes: C33 E24 E32 J21 R23 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-mac, nep-pbe and nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: REGIONAL AND SECTORAL EVIDENCE OF THE MACROECONOMIC EFFECTS OF LABOR REALLOCATION: A PANEL DATA ANALYSIS (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp902

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