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.
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Volume (Year): 10 (2003)
Issue (Month): 14 ()
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