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Unemployment And Labor Force Participation: A Panel Cointegration Analysis For European Countries

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  • Ozerkek, Y.

Abstract

This paper investigates the long-run relationship between unemployment and labor force participation and analyzes the existence of added/discouraged worker effect, which has potential impact on economic growth and development. Using panel cointegration techniques for a panel of European countries (1983-2009), the empirical results show that this long-term relation exists for only females and there is discouraged worker effect for them. Thus, female unemployment is undercount.

Suggested Citation

  • Ozerkek, Y., 2013. "Unemployment And Labor Force Participation: A Panel Cointegration Analysis For European Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 67-76.
    • Handle: RePEc:eaa:aeinde:v:13:y:2013:i:1_6
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    References listed on IDEAS

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    2. Amaia Altuzarra & Catalina Gálvez-Gálvez & Ana González-Flores, 2019. "Economic Development and Female Labour Force Participation: The Case of European Union Countries," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    3. Patil, Gopal R. & Sharma, Gajanand, 2022. "Urban Quality of Life: An assessment and ranking for Indian cities," Transport Policy, Elsevier, vol. 124(C), pages 183-191.
    4. Provenzano Sandro, 2017. "The Empirics of Hidden Labor Force Dynamics in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(5), pages 373-406, October.
    5. Muhammad zaheer Khan & Rusmawati Said & Sadaf Amjad, 2024. "Relationship between labor force participation and unemployment in Pakistan," Economics Bulletin, AccessEcon, vol. 44(1), pages 264-272.
    6. Muhammed QASIM & Muhammed Abrar ul HAQ & Tarik HUSSEIN & Charagh ROSHAN, 2018. "Does Women Well-being Matter for Demand and Development of Children?," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 14(29), pages 169-197, December.
    7. Iryna Lukianenko & Marianna Oliskevych, 2017. "Evidence of Asymmetries and Nonlinearity of Unemployment and Labour Force Participation Rate in Ukraine," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(5), pages 578-601.
    8. Ajide Folorunsho M., 2021. "Financial Inclusion and Labour Market Participation of Women in Selected Countries in Africa," Economics and Culture, Sciendo, vol. 18(1), pages 15-31, June.
    9. Walter Paternesi Meloni & Antonella Stirati, 2021. "What has driven the delinking of wages from productivity? A political economy-based investigation for high-income economies," Working Papers PKWP2104, Post Keynesian Economics Society (PKES).
    10. Stirati, Antonella & Paternesi Meloni, Walter, 2021. "Unemployment and the wage share: a long-run exploration for major mature economies," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 330-352.
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    More about this item

    Keywords

    labor-force participation rate; unemployment rate; discouraged worker effect; panel cointegration; economic development.;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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