Unemployment Invariance Hypothesis and Added Worker Effect: Philippines’ Labor Force Determinants

Authors

  • Xyruz Mike M. Barabat Department of Business Economics, University of Santo Tomas, Manila, Philippines
  • Bernadene Ianne V. Bernardo Department of Business Economics, University of Santo Tomas, Manila, Philippines
  • Edmunde Marcel J. Cruz Department of Business Economics, University of Santo Tomas, Manila, Philippines
  • Ronaldo R. Cabauatan Department of Business Economics, University of Santo Tomas, Manila, Philippines

Keywords:

added worker effect, economic growth, education, labor force participation rate, unemployment invariance hypothesis, unemployment rate

Abstract

This paper investigates the link into the unemployment rate and labor force participation rate for male and female cohorts in the Philippines from 2000-2020, using the Johansen cointegration test and ordinary least squares. Empirical findings for the Johansen cointegration test show that the labor force participation rate is influenced by the unemployment rate, which disproves the unemployment invariance hypothesis. The ordinary least squares find no quiddity of the added worker effect. This study provides other key variables for the labor force participation in the Philippines—lastly, this paper layout policy recommendations for addressing the unemployment rate.

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Published

28-11-2022

Issue

Section

Articles

How to Cite

[1]
X. M. M. Barabat, B. I. V. Bernardo, E. M. J. Cruz, and R. R. Cabauatan, “Unemployment Invariance Hypothesis and Added Worker Effect: Philippines’ Labor Force Determinants”, IJRESM, vol. 5, no. 11, pp. 156–167, Nov. 2022, Accessed: Apr. 18, 2024. [Online]. Available: https://journal.ijresm.com/index.php/ijresm/article/view/2443

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