The unemployment invariance hypothesis and the implications of added and discouraged worker effects in Latin America. A new GLO Discussion Paper by Ángel Maridueña-Larrea and GLO Fellow Ángel L. Martín-Román.

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A new GLO Discussion Paper reveals a clear gender bias towards the added worker effect for women, while the discouraged worker effect is confirmed for men.

GLO Discussion Paper No. 1224, 2023

The unemployment invariance hypothesis and the implications of added and discouraged worker effects in Latin America – Download PDF
by Maridueña-Larrea, Ángel & Martín-Román, Ángel

GLO Fellow Ángel L. Martín-Román

Ángel L. Martín-Román

Author Abstract: This research explores the long-term equilibrium relationship between unemployment and labour force participation rates for six selected countries in Latin America at both aggregate and gender-disaggregated levels. Cointegration analysis focused on the study of time series is used to validate the unemployment invariance hypothesis and explore added and discouraged worker effects in depth. The results suggest mixed dynamics for the aggregate model; however, a clear gender bias is revealed towards the added worker effect for women, while the discouraged worker effect is confirmed for men. The validity of the unemployment invariance hypothesis in several countries appears to reflect some rigidities that prevent the improvement of nations’ labour markets, exposing issues that economic policies must strategically address.

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PUBLISHED
Vol. 36, Issue 1, January 2023: Journal of Population Economics (JOPE) 16 articles. https://link.springer.com/journal/148/volumes-and-issues/36-1
Watch the videos of article presentations on December 1, 2022 during the GLO Global Conference 2022.

JOPE has CiteScore 6.5 (2021, LINK) & Impact Factor 4.7 (2021, LINK)

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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