Employment participation, unemployment and non market work: Composition models of the United States labour forceL Fraser Jackson and Mohammed S Khaled No 20312, Working Paper Series from Victoria University of Wellington, School of Economics and Finance Abstract: Data on the proportions in each of the labour force status categories sum to one and form a composition. Using the log ratios of the parts and a transform to orthogonal coordinates in a lower dimension provides a consistent way of handling this constraint. This paper emphasizes that a composition is a vector of values not a single number and shows a coordinate for employment participation is directly associated with a coordinate defining the level of search by those without jobs.The model is extended to deal with heterogeneity due to gender and current status and to generate a new analysis of the gross flows data. The associations observed provide evidence that micro decisions can be strongly modified by the macro situation and a Keynesian demand driven framework fits very well. Keywords: Composition models; Unemployment; Gross flows data; Labor force status; Labour force status; US labor force; U.S labour force; Log ratio models; Rationing (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwecf:20312 Access Statistics for this paper More papers in Working Paper Series from Victoria University of Wellington, School of Economics and Finance Alice Fong, Administrator, School of Economics and Finance, Victoria Business School, Victoria University of Wellington, PO Box 600 Wellington, New Zealand. Contact information at EDIRC. |
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