This paper conducts stationarity tests for levels and ratios of national and regional unemployment rates by race and ethnicity. Results indicate that both unemployment rates and ratios for the total population and for subgroups by race, ethnicity and region are stationary around changing means. The black/white unemployment ratio has increased on average and the Hispanic/white unemployment ratio has decreased on average. Results are compared across regions of the US.
AndrewsD.W.K.Tests for parameter instability and structural change with unknown change point.Econometrica.1993; 61(4): 821–56.
3.
BaiJ., PerronP.Estimating and testing linear models with multiple structural changes.Econometrica.1998; 66(1): 47–78.
4.
BarrettN.S., MorgensternR.D.Why do blacks and women have high unemployment rates?J Hum Res.1974; 9: 452–64.
5.
BetseyC.L.Differences in unemployment experience between blacks and whites.Am Econ Rev.1978; 68(2): 192–7.
6.
BlanchardO., KatzL.Regional evolutions.Brookings Paper Econ Activ.1992; 1: 1–61.
7.
BlanchardO., SummersL.Hysteresis in unemployment. NBER Working Paper 2035. 1986.
8.
ChengK.M., DurmazN., KimN., SternM.Hysteresis vs. natural rate of US unemployment. Auburn University Working Paper AUWP 2011–01.
9.
CoganJ.The decline in black teenage employment, 1950–70.Am Econ Rev.1982; 72(4): 621–38.
10.
CouchK.A., FairlieR.Last hired, first fired? black-white unemployment and the business cycle.Demography.2010; 47(1): 227–47.
11.
FairlieR.W., SundstromW.A.The racial unemployment gap in long-run perspective.Am Econ Rev.1997; 87(2): 306–10.
12.
FreemanR.B.Changes in the labor market for black Americans, 1948–72.Brookings Paper Econ Activ.1973; 1: 67–131.
13.
KwiatkowskiD., PhillipsP.C.B., SchmidtP., ShinY.Testing the null hypothesis of stationarity against the alternative of a unit root.J Econometrics.1992; 54: 159–78.
14.
LangK.A language theory of discrimination.Quar J Econ.1986; 101(2): 363–83.
15.
LeighD.E., RawlinsV.L.On the stability of relative black-white unemployment.M Lab Rev.1973; 96(5): 30–2.
16.
LevyF.Changes in employment prospects for black males.Brookings Paper Econ Activ.1980; 2: 513–37.
17.
MurthyV.N.R.Macroeconomy and the well-being of low-income African American families.J Econ Financ.2002; 26(3): 327–33.
18.
NealD.A., JohnsonW.R.The role of premarket factors in black-white wage differences.J Pol Econ.1996; 104(5): 869–95.
19.
NelsonC.R., PlosserC.I.Trends and random walks in macroeconomic times series: evidence and implications.J Monetary Econ.1982; 10(2): 139–62.
RitterJ.A., TaylorL.J.Racial disparity in unemployment.Rev Econ Stat.2011; 93(1): 30–42.
22.
RoedK.Unemployment hysteresis–macro evidence from 16 OECD countries.Emp Econ.1996; 21(4): 589–600.
23.
Romero-AvilaD., UsabiagaC.The unemployment paradigms revisited: A comparative analysis of U.S. state and European unemployment.Cont Econ Pol.2009; 27(3): 321–34.
24.
ShapiroC., StiglitzJ.Involuntary unemployment as a worker discipline device.Am Econ Rev.1984; 74(3): 433–44.
