Employment in Manufacturing: A Long‐run Relationship and Short‐run Dynamics

Abstract

Examines the behaviour of UK employment in manufacturing over the period 1964 to 1986. The use of cointegration techniques allows the separation of a long‐run equilibrium relationship for employment from its short‐run dynamics. The estimated model demonstrates a high degree of parameter stability both within and outwith the sample period used for estimation. Given the noted sensitivity of other employment equations to system shocks, the model′s performance pre – and post‐1979 is particularly noteworthy.

Citation

MacDonald, R. and Murphy, P.D. (1992), "Employment in Manufacturing: A Long‐run Relationship and Short‐run Dynamics", Journal of Economic Studies, Vol. 19 No. 5. https://doi.org/10.1108/01443589210024809