UNEMPLOYMENT RATE AND COMPENSATION 2002

Letter of Transmittal

June 3, 2002
Dr.Bangorn Tubtimtong
Assistant Professor,
Masters in International Economics and Finance
Faculty of Economics,
Chulalongkorn University,
Phayathai Road, Bangkok, Thailand

Subject: Letter of Transmittal.

Dear Madam,

Here is my paper on "Relationship between Hourly Compensation in

Manufacturing and Unemployment Rate in the United States, Canada
and the United Kingdom” that I was assigned. It was a great opportunity for
me to acquire practical knowledge of the Quantitative Methods in Economic
Analysis and forecasting

I have concentrated my best effort to achieve the objectives of the report

and hope that my endeavor will serve the purpose.

I believe that the knowledge and experience I have gathered during my

paper preparation will immensely help me in my professional life. I will be
obliged if you kindly approve this effort.

Sincerely yours,

Sk. Ashiquer Rahman

Id#4585974929

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 UNEMPLOYMENT RATE AND COMPENSATION 2002

Chulalongkorn University
Masters in International Economics and Finance
Bangkok, Thailand

Preface

Any institutional education would not be completed if it were confined within

theoretical aspects. Every branch of education has become more competed
by their practical application and accomplishment of full knowledge. We shall
be benefited by our education if we can effectively apply the institutional
education in practical fields. Hence, we all need practical education to apply
theoretical knowledge in real world. By considering this importance “faculty
of economics” arranges the Quantitative Methods in Economic Analysis
courses for the students of Masters in International Economics and Finance.
As a part of this program my topic was selected as “Relationship between
Hourly Compensation in Manufacturing and Unemployment Rate in the
United States, Canada and the United Kingdom.”

I tried my best to conduct an effective study by arrange and analysis data.

There may be some mistakes, which are truly unintentional. So, I would
request to look at the matter with merciful mind.

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 UNEMPLOYMENT RATE AND COMPENSATION 2002

Sk. Ashiquer Rahman

Id#4585974929
Chulalongkorn University
Masters in International Economics and Finance
Bangkok, Thailand

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 UNEMPLOYMENT RATE AND COMPENSATION 2002

Acknowledgement

First, all praises go to almighty Allah, the most gracious, the most merciful to
give me the ability for all these I have done.

Then I would like to thank Ms. Wanwadee Wongmongkol. Now I would like to
thank Dr.Bangorn Tubtimtong Assistant Professor, Chulalongkorn University,
Phayathai Road, Bangkok,Thailand to give me the opportunity to do this
project.

I would also like to thank Professor. Paitoon Wiboonchutikula, Ph.D ,Associate

professor and Chairperson of Faculty of Economics, Chulalongkorn University
& Professor Salinee. Secretatery international economics and finance. My
striking thanks go to honorable sir Dr. MN.Sirker who has helped me in all
aspect to prepare the report.

I would like to thank lab incharge Ms. Mink . Last but not the least I
wish to thank my friends, William Lloyed ,Nakarin and Athipat, for their
very helpful discussions.

Sk. Ashiquer Rahman

Id#4585974929
Chulalongkorn University

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 UNEMPLOYMENT RATE AND COMPENSATION 2002

Masters in International Economics and Finance

Bangkok, Thailand

Table of Content

Title Page

Letter of Transmittal ii

Preface iii
Acknowledgement iv
Table Of Content v
List Of Tables vi
List Of Figures vii
Acronyms And Abbreviation/ viii

Contraction/Symbols
Statement Of The Problem 1-1
Literature Review 1-1
Formulation Of General Model 1-2
Data Sources &Description 2-11
Model Estimation And Hypothesis Testing 12-16
Interpretation Of The Results And 17-17
Conclusions
Limitations Of The Study And Possible 17-17
Extensions
References 17-17
Appendix 18-19

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 UNEMPLOYMENT RATE AND COMPENSATION 2002

List of Tables

Title Page
Table 1. Descriptive Statistics 2

Table 2. Least Squares Regressions Results 13 ii

Table 3 ML-ARCH Regressions Results 13
 UNEMPLOYMENT RATE AND COMPENSATION 2002

List of Figure

Title Page
Fig:1: Compensation in Canada 3

Fig:2: Compensation in UK 3
Fig:3: Compensation in USA 4
Fig:4: Unemployment in Canada 4 ii

Fig:5: Unemployment in UK 5
Fig:6: Unemployment in USA 5
 UNEMPLOYMENT RATE AND COMPENSATION 2002

List of Graph
Title Page
Graph:1: Compensation in Canada 6

Graph :2: Compensation in UK 6

Graph :3: Compensation in USA 7
Graph :4: Unemployment in Canada 7
Graph :5: Unemployment in UK 8
Graph :6: Unemployment in USA 8 ii

Graph :7. Residual, Actual, Fitted 14

Graph: 8. Pooled Result 15
 UNEMPLOYMENT RATE AND COMPENSATION 2002

List of Chat

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 UNEMPLOYMENT RATE AND COMPENSATION 2002

Title Page
Chat:1: Compensation in Canada 9

Chat :2: Compensation in UK 9

Chat :3: Compensation in USA 10
Chat :4: Unemployment in Canada 10
Graph :5: Unemployment in UK 11
Chat :6: Unemployment in USA 11

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