On the dynamics of unemployment in a developing economy: Colombia
This paper estimates an asymmetric error correction model to analyse the dynamic behaviour of the Colombian unemployment rate. It is found that wages above their long-run equilibrium level do increase unemployment, but wages below this level do not reduce it. This finding provides evidence of the existence of hysteresis in the Colombian unemployment rate.
Volume (Year): 10 (2003)
Issue (Month): 14 ()
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