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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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Author Info
Carlos Castellar
Jose Ignacio Uribe () (Universidad del Valle)
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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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

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution

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  1. Blanchard, Olivier J. & Summers, Lawrence H., 1987. "Hysteresis in unemployment," European Economic Review, Elsevier, vol. 31(1-2), pages 288-295. [Downloadable!] (restricted)
    Other versions:
  2. Rómulo Chumacero, 2000. "Se Busca una Raíz Unitaria: Evidencia para Chile," Working Papers Central Bank of Chile 86, Central Bank of Chile. [Downloadable!]
    Other versions:
  3. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," Working papers 427, Massachusetts Institute of Technology (MIT), Department of Economics.
    Other versions:
  4. Luis Eduardo Arango T. & Carlos Esteban Posada, 2001. "El Desempleo En Colombia," BORRADORES DE ECONOMIA 002495, BANCO DE LA REPÚBLICA. [Downloadable!]
    Other versions:
  5. Juan Carlos Guataqui, 2000. "Estimaciones de la tasa natural de desempleo en Colombia: una revisión," BORRADORES DE INVESTIGACIÓN 002603, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
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