The link between unemployment and labor force participation rates in Japan: A regional perspective

Autor:	De-Chih Liu
Rok vydání:	2014
Předmět:	Economics and Econometrics Labour economics media_common.quotation_subject Political Science and International Relations Unemployment Perspective (graphical) Economics Discouraged worker Univariate Finance Test (assessment) media_common
Zdroj:	Japan and the World Economy. 30:52-58
ISSN:	0922-1425
DOI:	10.1016/j.japwor.2014.02.004
Popis:	This paper explores the co-integrating relationship between unemployment and the labor force participation rate in Japan from a regional perspective. The univariate co-integration tests indicate that the “no co-integration” hypothesis cannot be rejected in Northern-Kanto, Hokuriku and Kyusyu. Because the univariate co-integration approach might suffer from low power we employed a panel version of the co-integration test recently developed by Westerlund (2006) that also considers the possibility of multiple structural breaks in the level of individual co-integrating equations. The test results lend support for an overwhelmingly long-run relationship between the two variables across regions. Accordingly, this finding is not in line with the unemployment invariance hypothesis. As a result a nationally orientated employment policy aimed at improving the unemployment and labor force participation rates might be preferred over a region-specific employment policy in Japan.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::f985dbb508b1c5b4c0f46e549d9d9998 https://doi.org/10.1016/j.japwor.2014.02.004 Zobrazit plný text záznamu Full Text from ScienceDirect