 Unemployment invariance hypothesis and structural breaks in PolandEmilio Congregado, Ewa Gałecka-Burdziak, Antonio Golpe and Robert Pater The Journal of Economic Asymmetries, 2021, vol. 24, issue C Abstract: We study the long-run relationship between unemployment and the labour force participation rate while accounting for potential non-linearities. We explore two sources of non-linearities: structural breaks (as we allow the relationship to be time-varying) and differences by gender groups. We apply a novel approach, as we extend the cointegration analysis by combining it with structural break tests. The model is applied to Poland, which is a suitable case for study because it allows us to illustrate how this relationship operates in a developed country that was formerly centrally planned. The results qualify previous findings by providing mixed evidence for the invariance, the discouraged worker, and the added worker hypotheses. In particular, in the past, a positive and cyclical relationship – i.e., an added worker effect – could be observed, albeit with differences by gender and age group. For the current regime, we can provide evidence of a discouraged worker effect among Polish men only. Keywords: Cointegration; Structural breaks; Discouraged worker effect; Added worker effect; Unemployment invariance hypothesis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:24:y:2021:i:c:s1703494921000037 DOI: 10.1016/j.jeca.2021.e00198 Access Statistics for this article The Journal of Economic Asymmetries is currently edited by A.G. Malliaris More articles in The Journal of Economic Asymmetries from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.