Unemployment Hysteresis: Empirical Evidence for Latin America

Ayala, Astrid; Cuñado, Juncal; Gil-Alana, Luís A.

doi:10.1016/s1514-0326(12)60010-5

Cited by 17 publications

(5 citation statements)

References 34 publications

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“…There should be a sufficient period of time to reestablish the equilibrium 8 (Akay et al, 2011, p. 490). Ayala et al (2012) also note that the unemployment rate has a constant long memory process according to the persistence view. This is also supported by the arguments of Mitchell (1993), in which the effects of the shocks on unemployment are assumed as having long durations.…”

Section: Hysteresis In Unemployment: Theoretical Underpinningsmentioning

confidence: 99%

Unemployment Hysteresis: Attached or Mismatched?

Özdemir¹

2021

SAEB

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This paper investigates the empirical significance of the unemployment problem whether it is structural or temporary on the basis of region-based, income-based and aggregate classifications of different countries for the yearly data from 1991 to 2018. In the first part of the paper, we examine the stationary position of unemployment series by way of using individual unit-root tests. Since the series are possibly subjected to the structural breaks, we also use additional approaches in which the effects of the break dates are checked in the analysis. Furthermore, we compare the initial findings of univariate unit-root tests along with panel unit-root testing procedures to critically assess the statistical validity of the hysteresis hypothesis in unemployment for given samples. The empirical findings imply that we cannot reject the hysteresis hypothesis for different classifications of the countries against the alternative of a natural rate even in the presence of structural breaks.

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Section: Hysteresis In Unemployment: Theoretical Underpinningsmentioning

confidence: 99%

Unemployment Hysteresis: Attached or Mismatched?

Özdemir¹

2021

SAEB

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“…The study of Blanchard and Summers (1986) is at the forefront of the empirical studies on unemployment hysteresis. Apart from this study, other examined empirical studies are as follows: Brunello (1990), Neudorfer et al (1990), Jaeger and Parkinson (1994), Røed (1996), Song and Wu (1997), Arestis and Mariscal (1999), Papell et al (2000), León-Ledesma (2002), Camarero and Tamarit (2004), Camarero et al (2006), Gustavsson and Österholm (2006), Camarero et al (2008), Gomes and Da Silva (2008), Lee and Chang (2008), Lee et al (2009), Lee (2010), Chang (2011), Ayala et al (2012), Cevik and Dibooglu (2013), Lee et al (2013), Bakas and Papapetrou (2014), Cheng et al (2014), Furuoka (2014), Tiwari (2014), Jiang and Chang (2016), Akdoğan (2017), Güriş et al (2017), Meng et al (2017), Bahmani-Oskooee et al (2018), Rodriguez-Gil (2018), Yaya et al (2019), Khraief et al (2020), Omay et al (2020), Yilanci et al (2020), Omay et al (2021), Bostancı and Koç (2022), Caporale et al (2022),…”

Section: Literature Reviewmentioning

confidence: 99%

Danimarka ve İsveç İçin İşsizlik Histerisi Hipotezinin Test Edilmesi

ERDOĞMUŞ¹

2023

Akdeniz Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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Bu çalışma Danimarka ve İsveç için işsizlik histerisi hipotezinin geçerliliğini sınamaktadır. Ampirik analiz için gerekli işsizlik oranı verileri OECD veri tabanından sağlanmıştır. Analiz dönemi (OECD veri tabanındaki veri mevcudiyetine bağlı olarak) Danimarka için 1969–2022 dönemini, İsveç için ise 1960–2022 dönemini kapsamaktadır. Çalışmada yıllık frekanslı veriler kullanılmıştır. Yıllık frekanslı verilerin seçilme nedeni mevsimsel etkilerden kaçınmaktır. İşsizlik oranı verileri ham haliyle kullanılmamıştır. Analizde lojistik dönüşümlü işsizlik oranları dikkate alınmıştır. Çalışmada lojistik dönüşümlü işsizlik oranı serilerinin durağan olup olmadığı araştırılmıştır. Danimarka verileri için Kapetanios vd. (2003) tarafından önerilen doğrusal olmayan birim kök testi ve Hepsag (2021) tarafından önerilen doğrusal olmayan birim kök testi uygulanmıştır. Hepsag (2021) tarafından önerilen testin Kapetanios vd. (2003) çalışmasında önerilen testten genel olarak daha güçlü olması nedeniyle Hepsag (2021) tarafından önerilen birim kök testinin sonucu dikkate alınmıştır. İsveç için ise hem bazı geleneksel testler [ADF birim kök testi, Elliott vd. (1996) tarafından önerilen birim kök testi, Kwiatkowski vd. (1992) tarafından önerilen durağanlık testi, Phillips ve Perron (1988) tarafından önerilen birim kök testi] hem de Carrion-i-Silvestre ve Sansó (2007) tarafından önerilen ve yapısal kırılmaları dikkate alan durağanlık testi uygulanmıştır. Bunlar arasından Carrion-i-Silvestre ve Sansó (2007) tarafından önerilen testin sonucu dikkate alınmıştır. Ampirik analiz neticesinde Danimarka ve İsveç için işsizlik histerisi hipotezinin geçerli olmadığı sonucuna varılmıştır. Ayrıca çalışmada politika yapıcılar için önemli önerilerde bulunulmuştur.

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“…Bahmani-Oskooee, Chang, and Ranjbar (2017) focused on the United States and found partial evidence of hysteresis through stochastic dynamics of the unemployment rate. Ayala, Cuñado, and Gil-Alana (2012) examined eighteen Latin American countries, including Colombia, and concluded that sixteen of them exhibited evidence of hysteresis based on unit root tests and parametric models, considering endogenous structural changes.…”

Section: Literature Reviewmentioning

confidence: 99%

Remittances, Nonlabor Income as a Source of Hysteresis in Unemployment in Colombia, 2010–2020

Cardona-Arenas,

Sierra-Suarez

2023

Lat. Am. res. rev.

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This study seeks to determine the impact of remittances and nonlabor income on the duration of unemployment, and therefore on the hysteresis phenomenon in Colombia for the period between January 2010 and January 2021. The long-term unemployment rate in Colombia (LAPU) is calculated, and a vector autoregressive (VAR) model is subsequently estimated to evaluate the impact of remittances and nonlabor income on the LAPU. The results suggest that the increase in nonlabor income significantly affected LAPU in Colombia in the period analyzed. The growth of remittances instead turned out to positively and significantly impact LAPU only during the COVID-19 pandemic crisis. This suggests that remittances have become a fundamental income in times of crisis that allow for financing the search for work for a longer period of time, thus increasing the duration of unemployment and generating a hysteresis effect.

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Unemployment Hysteresis: Empirical Evidence for Latin America

Cited by 17 publications

References 34 publications

Unemployment Hysteresis: Attached or Mismatched?

Unemployment Hysteresis: Attached or Mismatched?

Danimarka ve İsveç İçin İşsizlik Histerisi Hipotezinin Test Edilmesi

Remittances, Nonlabor Income as a Source of Hysteresis in Unemployment in Colombia, 2010–2020

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