Unemployment Invariance Hypothesis, Added and Discouraged Worker Effects in Canada?

Aysıt Tansel () and Zeynel Ozdemir ()

No 1717, ERC Working Papers from ERC - Economic Research Center, Middle East Technical University

Abstract: This article explores the long-run relationship between unemployment rate and labor force participation rate for men and women in Canada. The co-integration analysis vindicates the existence of a long-run relationship between these two variables. This finding leads us to doubt the pertinence of the unemployment invariance hypothesis for Canada. This is consistent with the empirical studies for Japan, Sweden and the United States, but contradicts the empirical studies for Australia, Romania and Turkey. Further, we find discouraged worker effect for women and added worker effect for men and we elaborate on the possible explanations for this seemingly contradictory finding.

Keywords: Unemployment Invariance; Unemployment; Labor Force Participation; Discouraged Worker Effect; Added Worker Effect; Co-integration; Canada (search for similar items in EconPapers)
JEL-codes: E24 J21 J64 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2016-08, Revised 2017-12
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://erc.metu.edu.tr/en/system/files/menu/series17/1717.pdf Revised version, 2017 (application/pdf)

Related works:
Journal Article: Unemployment invariance hypothesis, added and discouraged worker effects in Canada (2018)
Working Paper: Unemployment Invariance Hypothesis, Added and Discouraged Worker Effects in Canada? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:met:wpaper:1717

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