Bakas, Dimitrios; Panagiotidis, Theodore; Pelloni, Gianluigi - 2013
This paper re-examines Lilien's sectoral shifts hypothesis for U.S. unemployment. We employ a monthly panel that spans … from 1990:01 to 2011:12 for 48 U.S. states. Panel unit root tests that allow for crosssectional dependence reveal the …-sectional dependence in the panel, we show that sectoral reallocation is significant not only at the aggregate level but also at the state …