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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
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Related works:
Working Paper: Labor-Force Participation Rates and the Informational Value of Unemployment Rates: Evidence from Disaggregated US Data (2010) Downloads
Working Paper: Labor-Force Participation Rates and the Informational Value of Unemployment Rates: Evidence from Disaggregated US Data (2010) Downloads
Working Paper: Labor-Force Participation Rates and the Informational Value of Unemployment Rates: Evidence from Disaggregated US Data (2010) Downloads
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