Munich Personal RePEc Archive

Unemployment and Labour Force Participation in Italy

Nemore, Francesco (2018): Unemployment and Labour Force Participation in Italy.

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Abstract

This paper provides an empirical investigation of the long-run relationship between unemployment and labour force participation rate in Italy. I test the “unemployment invariance hypothesis” using a macroeconomic approach and resorting to cointegration techniques. After testing for the non-stationarity of each time series, cointegration analysis results strongly suggest a clear long-run relationship between the two variables independently on gender aggregation level. In order to provide robustness to my results I replicate the analysis by age group aggregation level showing a strong “discouraged-worker effect” for the middle and old workers group.

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