Kula, Ferit and Aslan, Alper (2008): Hysteresis vs. natural rate of unemployment: One, the other, or both?
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This paper re-examines the empirical validity of the hysteresis hypothesis in unemployment rates in terms of education level in 17 OECD countries. To this end for unbalanced panel, we employ Pesaran’s Cross Sectional Dependence (CD) and Cross-Sectionally Augmented ADF (CADF) tests. Our empirical findings provide that the evidence is favorable to the non-stationary of the unemployment rates by primary and secondary education attainment in total unemployment, and therefore the existence of hysteresis while there is no evidence of hysteresis for unemployment rates by tertiary education.
|Item Type:||MPRA Paper|
|Original Title:||Hysteresis vs. natural rate of unemployment: One, the other, or both?|
|English Title:||Hysteresis vs. natural rate of unemployment: One, the other, or both?|
|Keywords:||Hysteresis, unemployment, the natural rate hypothesis|
|Subjects:||J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure
J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General
|Depositing User:||Ferit Kula|
|Date Deposited:||14. Mar 2009 06:46|
|Last Modified:||19. Feb 2013 00:42|
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