On the Persistence of Labor Force Participation Rates by Gender: Evidence from OECD Countries Hervé Queneau* Brooklyn College of the City University of New York and University of Paris I Panthéon-Sorbonne/IDHE-CNRS and Amit Sen‡ Xavier University This Version: December 2013 (Preliminary) Abstract We present empirical evidence regarding differences in the time series properties of labour force participation rates across gender for a group of twelve OECD countries. Our results indicate that there are gender differences in the dynamics of labor force participation rates across countries. Specifically, the female labor force participation rates are relatively more persistent in seven countries (Australia, Canada, Germany, Japan, The Netherlands, Portugal, and Spain), and the male labour force participation rate is more persistent in four countries (Finland, Norway, Sweden, and the U.S.). Keywords: Labour Force Participation Rates, Gender Gap, Persistence, Unit Root JEL Classification: E24 * Corresponding Author: Brooklyn College of the City University of New York, Department of Finance and Business Management, 2900 Bedford Avenue, Brooklyn, NY 11210-2889. Phone: (718) 951-5000 Ext. 2097, Fax: (718) 951-4867, Email:
[email protected]. ‡ Department of Economics, 3800 Victory Parkway, Xavier University, Cincinnati, OH 45208. Phone: (513) 745-2931, Fax: (513) 745-3692, Email:
[email protected]. This author acknowledges support of the O’Conor Fellowship at Xavier University. 1. Introduction The use of the unemployment rate to ascertain the strength or state of the labour market has recently been brought into question. Murphy and Topel (1997) and Krugman (2004), for instance, have argued that there has been a decrease in the labour force participation rates in the United States that point to a weakening of its labour market.