Does the Unemployment Invariance Hypothesis Hold for Canada?

Aysıt Tansel (), Zeynel Ozdemir () and Emre Aksoy ()
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Emre Aksoy: Kirikkale University

No 10178, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This article explores the long-run relationship between unemployment rate and labor force participation rate in Canada. The cointegration analysis vindicates the existence of a long-run relationship between these two variables. This finding leads us to doubt the pertinence of the unemployment invariance hypothesis for Canada. This is consistent with the empirical studies for Japan, Sweden and the United States, but contradicts the empirical studies for Australia, Romania and Turkey. There are contradictory studies for the United Kingdom.

Keywords: cointegration; Canada; unemployment; labor force participation; unemployment invariance hypothesis (search for similar items in EconPapers)
JEL-codes: E24 J21 J64 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2016-08
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (3)

Published - substantially revised version published as 'Unemployment Invariance Hypothesis, Added and Discouraged Workers in Canada' in: International Journal of Manpower, 2018, 39 (7), 929-936.

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Working Paper: Does Unemployment Invariance Hypothesis Hold for Canada? (2016)
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