Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/195205 
Year of Publication: 
2017
Citation: 
[Journal:] SPOUDAI - Journal of Economics and Business [ISSN:] 2241-424X [Volume:] 67 [Issue:] 4 [Publisher:] University of Piraeus [Place:] Piraeus [Year:] 2017 [Pages:] 45-84
Publisher: 
University of Piraeus, Piraeus
Abstract: 
This study examines the relationship between unemployment and labor force participation to judge the presence of the discouraged worker/added worker/unemployment invariance effect in the US labor market, spanning the period 1976-2014. Panel unit root and cointegration tests explore this relationship. The results indicate the presence of a relationship between unemployment and labor force participation rates, while the impact of unemployment on labor force participation is negative, indicating the prevalence of the discouraged worker effect across the US. These findings receive statistical support through panel causality tests, while they carry significant policy implications in relevance to labor policies across the US states.
Subjects: 
unemployment invariance hypothesis
discouraged worker effect
labor force participation rates
unemployment rates
US states panel data
JEL: 
E24
J60
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.