The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United States

This paper investigates the relationship between the immigrant population and the unemployment rate in the United States for period from 1980 to 2013. For this purpose, firstly, coefficient of long and short run is estimated by using Autoregressive Distributed Lag (ARDL) method and then, linear and...

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Main Authors: Alper Aslan, Buket Altinöz
Format: Article
Language:English
Published: Universitas Islam Indonesia 2020-04-01
Series:Economic Journal of Emerging Markets
Subjects:
Online Access:http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/12429
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author Alper Aslan
Buket Altinöz
author_facet Alper Aslan
Buket Altinöz
author_sort Alper Aslan
collection DOAJ
description This paper investigates the relationship between the immigrant population and the unemployment rate in the United States for period from 1980 to 2013. For this purpose, firstly, coefficient of long and short run is estimated by using Autoregressive Distributed Lag (ARDL) method and then, linear and nonlinear causality test are applied. Findings/Originality: According to ARDL test results; there is a positive effect of immigration to the United States on the unemployment rate to in the long run. In other words, while there is no statistically significant relationship between two variables in the short run, an increase in the immigrant population increases the unemployment rate by 0.14 percent in the long run. The bootstrapped Toda-Yamamoto linear causality test results imply that there is no causal relationship between immigration and unemployment. Also, there is no nonlinear relationship between immigration population and unemployment rate in the United States.
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spelling doaj.art-32ec6881df294f90b3cf223ba7ef7d4e2022-12-22T03:19:37ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2020-04-01121The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United StatesAlper Aslan0Buket Altinöz1Faculty of Aeronautics and Astronautics, Department of Aviation Management, Erciyes University, Kayseri, TurkeyVocational School, Accounting and Tax Practices, Nisantasi University, Istanbul, Turkey This paper investigates the relationship between the immigrant population and the unemployment rate in the United States for period from 1980 to 2013. For this purpose, firstly, coefficient of long and short run is estimated by using Autoregressive Distributed Lag (ARDL) method and then, linear and nonlinear causality test are applied. Findings/Originality: According to ARDL test results; there is a positive effect of immigration to the United States on the unemployment rate to in the long run. In other words, while there is no statistically significant relationship between two variables in the short run, an increase in the immigrant population increases the unemployment rate by 0.14 percent in the long run. The bootstrapped Toda-Yamamoto linear causality test results imply that there is no causal relationship between immigration and unemployment. Also, there is no nonlinear relationship between immigration population and unemployment rate in the United States. http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/12429ImmigrationunemploymentUnited StatesARDLcausalityToda-Yamamoto
spellingShingle Alper Aslan
Buket Altinöz
The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United States
Economic Journal of Emerging Markets
Immigration
unemployment
United States
ARDL
causality
Toda-Yamamoto
title The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United States
title_full The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United States
title_fullStr The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United States
title_full_unstemmed The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United States
title_short The relationship between unemployment and immigration with linear and nonlinear causality tests: Evidence from the United States
title_sort relationship between unemployment and immigration with linear and nonlinear causality tests evidence from the united states
topic Immigration
unemployment
United States
ARDL
causality
Toda-Yamamoto
url http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/12429
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