Unemployment And Labor Force Participation: A Panel Cointegration Analysis For European Countries

Y. Ozerkek

Applied Econometrics and International Development, 2013, vol. 13, issue 1, 67-76

Abstract: This paper investigates the long-run relationship between unemployment and labor force participation and analyzes the existence of added/discouraged worker effect, which has potential impact on economic growth and development. Using panel cointegration techniques for a panel of European countries (1983-2009), the empirical results show that this long-term relation exists for only females and there is discouraged worker effect for them. Thus, female unemployment is undercount.

Keywords: labor-force participation rate; unemployment rate; discouraged worker effect; panel cointegration; economic development. (search for similar items in EconPapers)
JEL-codes: J20 J60 O15 O52 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (11)

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