Hysteresis in Unemployment: Evidence from Norwegian Counties
AbstractThe 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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Bibliographic InfoPaper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 0602.
Length: 25 pages
Date of creation:
Date of revision: 20 Aug 2002
Hysteresis; panel unit root tests; structural break;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
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