The Applicability of the Sectoral Shift Hypothesis in the Netherlands

De Loo, Ivo

Abstract

The Applicability of the Sectoral Shift Hypothesis in the Netherlands

Ivo De Loo

Nyenrode Business University

Journal of Applied Economics, Vol. 3, No. 1, pp. 57-69, May 2000

Abstract:
The sectoral shift hypothesis in the Netherlands cannot be easily tested for the presence of rigorous structural breaks in the data. Therefore, a Kalman Filter approach is adopted. What we find, is that the variables capturing the sectoral shift hypothesis are the most important in explaining Dutch unemployment behavior during the postwar period. This means that cyclical unemployment in the Netherlands can be viewed as a fluctuation of the natural rate of unemployment.

Keywords: Unemployment, sectoral shift hypothesis

JEL Classification: E24, J21

Accepted Paper Series

Date posted: June 14, 2004

Suggested Citation

De Loo, Ivo, The Applicability of the Sectoral Shift Hypothesis in the Netherlands. Journal of Applied Economics, Vol. 3, No. 1, pp. 57-69, May 2000. Available at SSRN: http://ssrn.com/abstract=555989

Contact Information

Ivo De Loo (Contact Author)

Nyenrode Business University ( email )

Straatweg 25
P.O. Box 130
Breukelen, 3620 AC
Netherlands