Relationship between labor force participation and unemployment in Pakistan

Muhammad zaheer Khan (), Rusmawati Said () and Sadaf Amjad ()
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Muhammad zaheer Khan: Balochistan University of Information Technology, Engineering and Management Sciences
Rusmawati Said: School of Business and Economics, University Putra, Malaysia.
Sadaf Amjad: Balochistan University of Information Technology, Engineering and Management Sciences

Economics Bulletin, 2024, vol. 44, issue 1, 264 - 272

Abstract: This paper investigates the relationship between labor force participation and unemployment in Pakistan using the annual time series data for the period 1990-2021. Johansen's cointegration and Gregory and Hansen's cointegration tests determine the long-run relationship between unemployment and labor force participation rate for aggregate male and female workers. Both cointegration procedures confirm no long-run relationship between the variables. Therefore, the results confirm the unemployment invariance hypothesis for aggregate and male and female workers in Pakistan.

Keywords: Unemployment Invariance Hypothesis; Unemployment; Labor force participation; Time series; Cointegration (search for similar items in EconPapers)
JEL-codes: J1 J4 (search for similar items in EconPapers)
Date: 2024-03-30
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