Testing for Hysteresis in Unemployment in OECD Countries: New Evidence using Stationarity Panel Tests with Breaks

This paper tests hysteresis effects in unemployment using panel data for 19 Organization for Economic Co‐operation and Development (OECD) countries covering the period 1956–2001. The tests exploit the cross‐sectional variations of the series, and additionally, allow for a different number of endogen...

Full description

Saved in:
Bibliographic Details
Published in:Oxford bulletin of economics and statistics 2006-04, Vol.68 (2), p.167-182
Main Authors: Camarero, Mariam, Carrion-i-Silvestre, Josep Lluís, Tamarit, Cecilio
Format: Article
Language:English
Subjects:
C22
C23
Empirical tests
Hypothesis testing
Hysteresis
Impact analysis
J64
Labour economics
Labour market structure
Manycountries
Methodology
OECD
Statistical methods
Studies
Unemployment
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper tests hysteresis effects in unemployment using panel data for 19 Organization for Economic Co‐operation and Development (OECD) countries covering the period 1956–2001. The tests exploit the cross‐sectional variations of the series, and additionally, allow for a different number of endogenous breakpoints in the unemployment series. The critical values are simulated based on our specific panel sizes and time periods. The findings stress the importance of accounting for exogenous shocks in the series and support the natural‐rate hypothesis of unemployment for the majority of the countries analysed.
ISSN:0305-9049
1468-0084
DOI:10.1111/j.1468-0084.2006.00157.x