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.
Full text available as:
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
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.
Document type
Monograph
(Working Paper)
Creators
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
URI
Other metadata
Document type
Monograph
(Working Paper)
Creators
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
URI
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