Labor-force participation rates and the informational value of unemployment rates: Evidence from disaggregated US data

Magnus Gustavsson and Pär Österholm

Economics Letters, 2012, vol. 116, issue 3, 408-410

Abstract: The informational value of the aggregate US unemployment rate has recently been questioned because of a unit root in the labor-force participation rate; the lack of mean reversion implies that long-run changes in unemployment rates are highly unlikely to reflect long-run changes in joblessness. This note shows that this critique also extends to unemployment rates for sub-populations, such as prime-aged males.

Keywords: Unit-root test; Labor force participation; Unemployment dynamics (search for similar items in EconPapers)
JEL-codes: C22 E24 J21 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176512001504
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Labor-Force Participation Rates and the Informational Value of Unemployment Rates: Evidence from Disaggregated US Data (2010)
Working Paper: Labor-Force Participation Rates and the Informational Value of Unemployment Rates: Evidence from Disaggregated US Data (2010)
Working Paper: Labor-Force Participation Rates and the Informational Value of Unemployment Rates: Evidence from Disaggregated US Data (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:116:y:2012:i:3:p:408-410

DOI: 10.1016/j.econlet.2012.04.020

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().