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Multiple equilibria in Spanish unemployment

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  • Franchi, Massimo
  • Ordóñez, Javier

Abstract

Abstract The dynamics of Spanish unemployment in the last thirty years has been characterized by a high and persistent unemployment period (from 1982 to 1999) and by two transition periods, one of massive employment destruction (from 1972 to 1982) and one of massive employment creation (from 1999 to 2007). After that, unemployment has raised again. This behavior is well captured by a non-linear smooth transition autoregressive (STAR) model and our analysis indicates the existence of two regimes with a fast transition between them: a high regime with an equilibrium value of unemployment of 18.3% and a low regime with a equilibrium value of 7.6%.

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Bibliographic Info

Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 22 (2011)
Issue (Month): 1 (February)
Pages: 71-80

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Handle: RePEc:eee:streco:v:22:y:2011:i:1:p:71-80

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Web page: http://www.elsevier.com/locate/inca/525148

Related research

Keywords: Unemployment Smooth transition Multiple equilibria Spain;

References

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Citations

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Cited by:
  1. Anna Baranowska-Rataj & Iga Magda, 2013. "Decomposition of trends in youth unemployment – the role of job accessions and separations in countries with different employment protection regimes," Working Papers 53, Institute of Statistics and Demography, Warsaw School of Economics.
  2. Craigwell, Roland & Mathouraparsad, Sebastien & Maurin, Alain, 2011. "Unemployment hysteresis in the English-speaking Caribbean: evidence from non-linear models," MPRA Paper 33440, University Library of Munich, Germany.
  3. Zuzanna Brzozowska, 2013. "Was falling fertility in the communist Poland driven by changes in women’s education?," Working Papers 54, Institute of Statistics and Demography, Warsaw School of Economics.

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