Event Title

Persistence in African American and European American Labour Markets in the US and UK: A Vector Error Correction Model Approach

Location

D1496

Start Date

1-4-2016 2:00 PM

End Date

1-4-2016 2:15 PM

Description

This study investigates the transmission of business cycle fluctuations between African American and European American unemployment rates in the US. The same is true for Diaspora Africans in the UK and their British counterparts. Both have rates about twice that of their European American and British counterparts. This article examines persistence in Diaspora African unemployment rates in the US and UK using a vector error correction framework and develops stylized facts which provide information as to possible causes why the persistence exists. Unit root tests find US African American rate I(0) and UK African American results similar to that of US and UK European Americans. Unit root tests are developed to handle structural breaks and dummy seasonals in the case of monthly and quarterly data. Estimation of VEC country models found the cointegrating relationships for the US and UK labor market separate and distinct. Also, the speed of adjustment coefficients were significant for both country regressions.

Comments

Dr. Anthony Andrews is an Associate Professor of Economics in the College of Business.

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Apr 1st, 2:00 PM Apr 1st, 2:15 PM

Persistence in African American and European American Labour Markets in the US and UK: A Vector Error Correction Model Approach

D1496

This study investigates the transmission of business cycle fluctuations between African American and European American unemployment rates in the US. The same is true for Diaspora Africans in the UK and their British counterparts. Both have rates about twice that of their European American and British counterparts. This article examines persistence in Diaspora African unemployment rates in the US and UK using a vector error correction framework and develops stylized facts which provide information as to possible causes why the persistence exists. Unit root tests find US African American rate I(0) and UK African American results similar to that of US and UK European Americans. Unit root tests are developed to handle structural breaks and dummy seasonals in the case of monthly and quarterly data. Estimation of VEC country models found the cointegrating relationships for the US and UK labor market separate and distinct. Also, the speed of adjustment coefficients were significant for both country regressions.