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Relationship between labor force participation and unemployment in Pakistan

Author

Listed:
  • Muhammad zaheer Khan

    (Balochistan University of Information Technology, Engineering and Management Sciences)

  • Rusmawati Said

    (School of Business and Economics, University Putra, Malaysia.)

  • Sadaf Amjad

    (Balochistan University of Information Technology, Engineering and Management Sciences)

Abstract

This paper investigates the relationship between labor force participation and unemployment in Pakistan using the annual time series data for the period 1990-2021. Johansen's cointegration and Gregory and Hansen's cointegration tests determine the long-run relationship between unemployment and labor force participation rate for aggregate male and female workers. Both cointegration procedures confirm no long-run relationship between the variables. Therefore, the results confirm the unemployment invariance hypothesis for aggregate and male and female workers in Pakistan.

Suggested Citation

  • 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.
    • Handle: RePEc:ebl:ecbull:eb-22-00801
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Unemployment Invariance Hypothesis; Unemployment; Labor force participation; Time series; Cointegration;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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