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Evolution and structure of unemployment in the metropolitan area of Cali 1988-1998. Does the unemployment rate present hysteresis?

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  • Carlos Castellar
  • Jose Ignacio Uribe

    ()
    (Universidad del Valle)

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    Abstract

    This article analyses unemployment’s structural components. The changes observed in the unemployment rate in Cali during the period from 1988 to 1994 were caused by a decrease in average job-search time or increased rate of ceasing to be unemployed. The empirical evidence rejected the hypothesis regarding total or partial hysteresis in unemployment. A decrease in this rate cannot be explained by endogenous factors if the unemployment rate does not have unit root (total or partial hysteresis thus not being found). Labour market flexibility policies are consequently not appropriate for solving the problem

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    File URL: http://www.fce.unal.edu.co/cej/number2/5-CastellarandUribe.pdf
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    Bibliographic Info

    Article provided by Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia in its journal Colombian Economic Journal.

    Volume (Year): 2 (2004)
    Issue (Month): 1 (November)
    Pages: 121-155

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    Handle: RePEc:cej:primer:v:2:y:2004:i:1:p:121-155

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    Related research

    Keywords: unemployment rate; hysteresis; Dickey and Fuller test;

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