Does Unemployment Invariance Hypothesis Hold for Canada?

Aysıt Tansel (), Zeynel Ozdemir () and Emre Aksoy

MPRA Paper from University Library of Munich, Germany

Abstract: This article explores the long-run relationship between unemployment rate and labor force participation rate in Canada. The cointegration 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. There are contradictory studies for the United Kingdom.

Keywords: Unemployment Invariance Hypothesis; Unemployment; Labor Force Participation; Cointegration; Canada (search for similar items in EconPapers)
JEL-codes: E24 J21 J64 (search for similar items in EconPapers)
Date: 2016-08-04
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 (3)

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Related works:
Working Paper: Does the Unemployment Invariance Hypothesis Hold for Canada? (2016)
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