Relationship between labor force participation and unemployment in Pakistan

This paper investigates the relationship between labor force participation and unemployment in Pakistan using the annual time series data for the period 1990-2021. Johansen's cointegration and Gregory and Hansen's cointegration tests determine the long-run relationship between unemployment...

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Bibliographic Details
Main Authors: Said, Rusmawati, Amjad, Sadaf, Khan, Muhammad Zaheer
Format: Article
Language:English
Published: Economics Bulletin 2024
Online Access:http://psasir.upm.edu.my/id/eprint/118431/
http://psasir.upm.edu.my/id/eprint/118431/1/118431.pdf
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Summary:This paper investigates the relationship between labor force participation and unemployment in Pakistan using the annual time series data for the period 1990-2021. Johansen's cointegration and Gregory and Hansen's cointegration tests determine the long-run relationship between unemployment and labor force participation rate for aggregate male and female workers. Both cointegration procedures confirm no long-run relationship between the variables. Therefore, the results confirm the unemployment invariance hypothesis for aggregate and male and female workers in Pakistan.