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State Policies, the Unemployment Rate, and the Employment-to-Population Ratio

Author

Listed:
  • Louis J. Pantuosco

    (Winthrop University)

  • Darrell Parker

    (Georgia Southern University)

  • Gary Stone

    (Winthrop University)

Abstract

Two measures of economic activity are unemployment rates and employment-to-population ratios. Both measures provide policy-makers with information regarding local labor markets. Typically the unemployment rate has been the measure of choice. We estimate a simultaneous equations model to determine the factors that impact both measures. We focus on two variables that are influenced by state policy officials, unemployment insurance and welfare generosity. It is determined that both factors affect state unemployment rates and employment-to-population ratios. From a state level perspective, it is important to view both labor market measures to evaluate the appropriateness of the proposed policy. A policy guideline is provided to accommodate government officials in this process.

Suggested Citation

  • Louis J. Pantuosco & Darrell Parker & Gary Stone, 2001. "State Policies, the Unemployment Rate, and the Employment-to-Population Ratio," Journal of Economic Insight, Missouri Valley Economic Association, vol. 27(2), pages 1-17.
    • Handle: RePEc:mve:journl:v:27:y:2001:i:2:p:1-17
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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