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The unemployment structure of the US states

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  • Clemente, Jesus
  • Lanaspa, Luis
  • Montanes, Antonio

Abstract

This paper analyses the time series properties of the unemployment rates of the 50 US States, as well as the global rate of the USA. Our results, based on the use of ADF-type tests, show that the inclusion of some breaks is vital in order to reduce the persistence on these rates. Thus, we can reject the unit root null hypothesis versus a double mean-shifted stationary alternative for 46 States and for the US total rate. We also find that the behavior of this latter rate is not congruent with that of the States, implying the presence of some aggregation problems which have not been commonly accounted in the literature.
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  • Clemente, Jesus & Lanaspa, Luis & Montanes, Antonio, 2005. "The unemployment structure of the US states," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(4-5), pages 848-868, September.
    • Handle: RePEc:eee:quaeco:v:45:y:2005:i:4-5:p:848-868
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    2. Shannon, Mike & Moazzami, Bakhtiar, 2015. "Canadian Regional NAIRU Estimates: A Structural Break Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    3. Holmes, Mark J. & Otero, Jesús & Panagiotidis, Theodore, 2013. "Modelling the behaviour of unemployment rates in the US over time and across space," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(22), pages 5711-5722.
    4. Giorgio Canarella & Rangan Gupta & Stephen M. Miller & Stephen K. Pollard, 2019. "Unemployment rate hysteresis and the great recession: exploring the metropolitan evidence," Empirical Economics, Springer, vol. 56(1), pages 61-79, January.
    5. Fábio Augusto Reis Gomes & Cleomar Gomes da Silva, 2006. "Hysteresis Vs. Nairu And Convergence Vs. Divergence: The Behavior Of Regional Unemployment Rates In Brazil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 161, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Dionisio Ramirez & Gabriel Rodr¨ªguez, 2014. "Do Labor Reforms in Spain Have an Effect on the Equilibrium Unemployment Rate?," International Journal of Social Science Studies, Redfame publishing, vol. 2(1), pages 105-120, January.
    7. Saboori, Behnaz & Gholipour, Hassan F. & Rasoulinezhad, Ehsan & Ranjbar, Omid, 2022. "Renewable energy sources and unemployment rate: Evidence from the US states," Energy Policy, Elsevier, vol. 168(C).
    8. Cevik, Emrah Ismail & Dibooglu, Sel, 2013. "Persistence and non-linearity in US unemployment: A regime-switching approach," Economic Systems, Elsevier, vol. 37(1), pages 61-68.
    9. Franchi, Massimo & Ordóñez, Javier, 2008. "Common smooth transition trend-stationarity in European unemployment," Economics Letters, Elsevier, vol. 101(2), pages 106-109, November.
    10. Andréa Zaitune Curi & Naércio Aquino Menezes-Filho, 2005. "A Relação Entre O Desempenho Escolar E Os Salários No Brasil," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 158, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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