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Hysteresis in unemployment: an empirical research for three member states of the European Union

Author

Listed:
  • Chaido DRITSAK

    (Technological Institute of Western Macedonia)

  • Melina DRITSAKI

    (Brunel University, London)

Abstract

This empirical paper investigates the hysteresis in unemployment in the case of three European countries namely Greece, Ireland and Portugal for the period 1984-2010. This study uses three classical unit-root tests, and a number of panel unit root tests, which are known to overcome specification problems, to check the existence of hysteresis in unemployment data from three European Union countries. The empirical results do not reject a unit root in the unemployment rates. This suggests that the unemployment hysteresis hypothesis exists in all three countries.

Suggested Citation

  • Chaido DRITSAK & Melina DRITSAKI, 2013. "Hysteresis in unemployment: an empirical research for three member states of the European Union," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(581)), pages 33-44, April.
    • Handle: RePEc:agr:journl:v:xx:y:2013:i:4(581):p:33-44
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    Citations

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    Cited by:

    1. Yuksel BAYRAKTAR, & Taha EGRI, & Furkan YILDIZ, 2016. "A Causal Relationship Between Oil Prices Current Account Deficit, And Economic Growth: An Empirical Analysis From Fragile Five Countries," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(Special I), pages 1-3, august.
    2. Furuoka, Fumitaka, 2014. "Unemployment hysteresis in Central Asia," MPRA Paper 60323, University Library of Munich, Germany.

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