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Hysteresis in Unemployment: Evidence from Norwegian Counties

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  • Kåre Johansen

    ()
    (Department of Economics, Norwegian University of Science and Technology)

Abstract

The paper tests hysteresis effects in unemployment using aggregate and panel data for Norway. While tests using aggregate or county— specific time series do not reject the null of unit root hysteresis, the panel tests firmly reject the null. When a one—time structural break is incorporated, the unit root hypothesis is rejected (or nearly so) in most counties. All results reveal a high degree of unemployment persistence, but the speed of adjustment is much higher when we allow for a change in mean.

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File URL: http://www.svt.ntnu.no/iso/WP/2002/6hysterwp.pdf
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Bibliographic Info

Paper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 0602.

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Length: 25 pages
Date of creation:
Date of revision: 20 Aug 2002
Handle: RePEc:nst:samfok:0602

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Postal: 7491 Trondheim
Phone: 73 59 19 40
Fax: 73 59 69 54
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Web page: http://www.svt.ntnu.no/iso/WP/wp.htm
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Keywords: Hysteresis; panel unit root tests; structural break;

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References

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  1. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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Citations

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Cited by:
  1. Matteo Lanzafame, 2006. "The Nature of Regional Unemployment in Italy," Studies in Economics 0607, Department of Economics, University of Kent.
  2. Mariam Camarero & Josep Lluís Carrion-i-Silvestre & Cecilio Tamarit, 2006. "Testing for Hysteresis in Unemployment in OECD Countries: New Evidence using Stationarity Panel Tests with Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(2), pages 167-182, 04.
  3. Mariam Camarero & Josep Lluís Carrion-i-Silvestre & Cecilio Tamarit, 2004. "Testing for hysteresis in unemployment in OECD countries. New evidence using stationarity panel tests with breaks†," Economic Working Papers at Centro de Estudios Andaluces 2004/40, Centro de Estudios Andaluces.

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