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Konjunkturinstitutet - National Institute of Economic Research Working Papers, Konjunkturinstitutet - National Institute of Economic Research

No 113:
Unemployment and Labour Force Participation in Sweden

Pär Österholm ()

Abstract: This paper investigates the relationship between Swedish unemployment and labour-force participation. Cointegration analysis supports a robust long-run relationship between the two variables, regardless of whether aggregate or gender-specific rates are used. This finding puts the empiri-cal relevance of the unemployment invariance hypothesis into question.

Keywords: Cointegration; Discouraged worker; (follow links to similar papers)

JEL-Codes: E24; (follow links to similar papers)

21 pages, November 30, 2009

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