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Examining the Unemployment Invariance Hypothesis: The Case of Australia

Phuong Nguyen Van

Australian Economic Review, 2016, vol. 49, issue 1, 54-58

Abstract: type="main" xml:lang="en">

This article examines the long-run relationship between the unemployment rate and the labour force participation rate in Australia. Using cointegration analysis, I find that there is no long-run relationship between these two variables in Australia. This finding supports the unemployment invariance hypothesis. The result is consistent with an empirical study of the United Kingdom but differs from the results in empirical studies for Sweden, the United States and Japan.

Date: 2016
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