Unemployment persistence: the case of Sweden
Abstract
An unobserved components time-series model is used to examine the persistence in Swedish unemployment. Three sources of unemployment persistence are identified: natural rate shocks; hysteresis; and persistent cycles. Hysteresis effects are modelled by allowing cyclical unemployment to have a lagged effect on the natural rate. The evidence suggests that the course of unemployment in Sweden has mainly been determined by natural rate shocks. This is especially the case for the large increase during the early 1990s, but also for the smaller changes between 1970 and the late 1980s. Hysteresis effects are also present but they are less important because of the relatively small cyclical changes.Download Info
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Bibliographic Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.
Volume (Year): 5 (1998)
Issue (Month): 1 ()
Pages: 25-29
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Bertil Holmlund, 2003.
"The Rise and Fall of Swedish Unemployment,"
CESifo Working Paper Series
918, CESifo Group Munich.
- Holmlund, Bertil, 2003. "The Rise and Fall of Swedish Unemployment," Working Paper Series 2003:13, Uppsala University, Department of Economics.
- Österholm, Pär, 2009.
"Unemployment and Labour Force Participation in Sweden,"
Working Paper
113, National Institute of Economic Research.
- Österholm, Pär, 2010. "Unemployment and labour-force participation in Sweden," Economics Letters, Elsevier, vol. 106(3), pages 205-208, March.
- Eriksson, S. & Gottfries, N., 2000.
"Ranking of Job Applicants, On-the-Job Search and Persistent Unemployment,"
Papers
2000:3, Uppsala - Working Paper Series.
- Eriksson, Stefan & Gottfries, Nils, 2005. "Ranking of job applicants, on-the-job search, and persistent unemployment," Labour Economics, Elsevier, vol. 12(3), pages 407-428, June.
- Eriksson, Stefan & Gottfries, Nils, 2000. "Ranking of Job Applicants, On-the-job Search and Persistent Unemployment," Working Paper Series 2000:3, Uppsala University, Department of Economics.
- Eriksson, Stefan & Gottfries, Nils, 2000. "Ranking of job applicants, on-the-job search, and persistent unemployment," Working Paper Series 2000:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Magnus Gustavsson & Par Osterholm, 2006. "Hysteresis and non-linearities in unemployment rates," Applied Economics Letters, Taylor and Francis Journals, vol. 13(9), pages 545-548.
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