Advanced Search
MyIDEAS: Login

Testing for hysteresis : unemployment persistence and wage adjustment

Contents:

Author Info

  • Fève, Patrick
  • Hénin, Pierre-Yves
  • Jolivaldt, Philippe

Abstract

This paper proposes a new testing strategy for unemployment hysteris as the joint restriction of a unit-root in the unemployment rate and no-effect of the level of unemployment in the Phillips wage equation. The relevant test statistics are derived when this joint restriction is imposed during estimation and when a sequential two steps testing strategy is adopted. The empirical application leads to rejection of the null hypothesis of wage hysteresis for most of our sample of OECD countries. We get an interesting contrast between the "core European countries" -rejecting hysteresis, but not unemployment non-stationarity- and the scandinavian ones where unemployment appears to be stabilized despite a lack of the wage correction.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.cepremap.ens.fr/depot/couv_orange/co9911.ps
Download Restriction: no
File URL: http://www.cepremap.ens.fr/depot/couv_orange/co9911.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Couverture Orange) with number 9911.

as in new window
Length: 28 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:cpm:cepmap:9911

Contact details of provider:
Postal: 142, rue du Chevaleret - 75013 PARIS
Phone: (331) 40 77 84 00
Fax: (331) 44 24 38 57
Web page: http://www.cepremap.ens.fr/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Lee, Chien-Chiang & Chang, Chun-Ping, 2008. "Unemployment hysteresis in OECD countries: Centurial time series evidence with structural breaks," Economic Modelling, Elsevier, vol. 25(2), pages 312-325, March.
  2. Luis Eduardo Arango & Carlos Esteban Posada, . "El Desempleo en Colombia," Borradores de Economia 176, Banco de la Republica de Colombia.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cpm:cepmap:9911

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sébastien Villemot).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.