Labor market behavior in Washington: A cointegration approach

Jun Ho Yeo; Sung Ahn; David Holland

doi:10.1007/s00168-004-0223-8

Back

Labor market behavior in Washington: A cointegration approach

Journal article

Open access

Peer reviewed

Labor market behavior in Washington: A cointegration approach

Jun Ho Yeo, Sung Ahn and David Holland

The Annals of regional science, Vol.39(2), pp.317-335

06/2005

DOI: https://doi.org/10.1007/s00168-004-0223-8

Handle:

https://hdl.handle.net/2376/113514

Files and links (1)

url

https://doi.org/10.1007/s00168-004-0223-8View

Published (Version of record) Open

Abstract

Regional Science

R23

C32

R00

R11

Landscape/Regional and Urban Planning

Geography (general)

Environmental Economics

Microeconomics

J21

J11

Economics / Management Science

This study found a long run equilibrium relationship among population, labor force participation rate and employment, in which population is positively related to employment and negatively related to labor force participation rate. We proved that employment growth from new business investment causes increase in population in the state of Washington in spite of its beautiful environment and amenities. The causality does not operate in reverse way. We decomposed the time series into stationary components and non-stationary components and interpreted each component on the basis of historical economic condition of Washington. The response of the labor force participation rate to an impulse in employment supports Bartik's (1993) and Yeo and Holland's (2004) findings. Obviously the result is the opposite of Blanchard and Katz's (1992) finding that the long-run effect of job growth on the labor force participation rate is negligible. With regard to the party who benefits from job growth, we suspect that most of new jobs are captured by in-migrants because the pattern of the stationary component of employment and net migration is quite similar and the impulse response of population is significantly higher than that of employment.

Metrics

8 Record Views

Details

Title: Labor market behavior in Washington: A cointegration approach
Creators: Jun Ho Yeo - Korea Environment Institute 613-2 Bulgwang-Dong Seoul 122-706 South Korea
Sung Ahn - Department of Management and Operations Washington State University Pullman WA 99164-4736 USA
David Holland - School of Economic Sciences Washington State University Pullman WA 99164-6210 USA
Publication Details: The Annals of regional science, Vol.39(2), pp.317-335
Academic Unit: Finance and Management Science, Department of
Publisher: Springer-Verlag; Berlin/Heidelberg
Identifiers: 99900547336401842
Language: English
Resource Type: Journal article