Regional and Sectoral Evidence of the Macroeconomic Effects of Labor Reallocation: A Panel Data Analysis

Bakas, Dimitrios ; Panagiotidis, Theodore ; Pelloni, Gianluigi (2013) Regional and Sectoral Evidence of the Macroeconomic Effects of Labor Reallocation: A Panel Data Analysis. Bologna: Dipartimento di Scienze economiche DSE, p. 26. DOI 10.6092/unibo/amsacta/3832. In: Quaderni - Working Paper DSE (902). ISSN 2282-6483.
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Abstract

This paper re-examines Lilien’s sectoral shifts hypothesis for U.S. unemployment. We employ a monthly panel that spans from 1990:01 to 2011:12 for 48 U.S. states. Panel unit root tests that allow for crosssectional dependence reveal the stationarity of unemployment. Within a framework that takes into account dynamics, parameter heterogeneity and cross-sectional dependence in the panel, we show that sectoral reallocation is significant not only at the aggregate level but also at the state level. The magnitude and the statistical significance of the latter as measured by Lilien’s index increases when both heterogeneity and cross-sectional dependence are taken into account.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Bakas, Dimitrios
Panagiotidis, Theodore
Pelloni, Gianluigi
Keywords
Unemployment, Sectoral Shifts, Employment Fluctuations, Dynamic Panel Data, Parameter Heterogeneity, Cross-Sectional Dependence
Subjects
ISSN
2282-6483
DOI
Deposit date
07 Oct 2013 08:40
Last modified
10 Feb 2014 10:24
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