Scandinavian Working Papers in Economics

Working Papers,
National Institute of Economic Research

No 113: Unemployment and Labour Force Participation in Sweden

Pär Österholm ()
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Pär Österholm: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden

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

JEL-codes: E24

21 pages, November 30, 2009

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