the upper quantiles, large positive shocks do not, and hysteresis exists. These findings can explain why unemployment …Mixed results for unemployment dynamics are reported in many studies using linear or non-linear unit root tests. A … possible explanation is that the literature focuses on the average behavior of unemployment and assumes that the speed of …

New-Keynesian macroeconomic models typically assume that any long-run trade-off between inflation and unemployment is … rate, unemployment and inflation in West Germany from the early 1960s up to 2004 using a multivariate co … Germany data a strong negative correlation between the trend components of inflation and unemployment. We show that this …

, equilibrium unemployment is haunted by hysteresis. The curious history of the natural rate hypothesis is considered, curious … evidence regarding hysteresis effects on output and unemployment is then reviewed. …This paper argues that the natural rate of unemployment hypothesis, in which equilibrium unemployment is determined by …

demand and hysteresis. In the conclusion, some consequences for economic policy are indicated. …

century of UK and USA unemployment data. For both the countries we see a period conforming to hysteresis starting in the early …A novel procedure is applied to test for switches between hysteresis and the natural rate theory over more than a …

' subsequent employment opportunities. An analysis of panel data from OECD countries during the 1960-2010 periods reveals that a … worker who experiences a one-percentage-point higher unemployment rate while the worker is 16-24 years old has a 0 ….14 percentage-point higher unemployment rate at ages 25-29 and 0.03 percentage points higher at ages 30-34. The persistence of this …

This paper re-examines the empirical validity of the hysteresis hypothesis in unemployment rates in terms of education … series properties of high and vocational high school educated unemployment rates are different than the overall unemployment … rate and other educational unemployment rates. …

unemployment fluctuations of the last three decades. A structural VAR model for the growth rates of labor productivity, inflation … and unemployment is estimated on American and French data. By using long-run identifying restrictions, unemployment … large part of the French unemployment drift. This result questions the conventional prior that the heterogeneity in …

where aggregate shocks have a permanent effect on the unemployment rate. If agents' wealth decreases, the unemployment rate … increases for a potentially indefinite period. This makes unemployment rate dynamics path dependent as in Blanchard and Summers … (1987). I argue that this feature explains the persistence of the unemployment rate in the U.S. after the Great Recession …

This paper aims to investigate the unemployment hysteresis hypothesis for Iran, by using annual data of actual … breaks such as ADF and Phillips and Perron (1988) tests and fail to reject the hysteresis hypothesis in unemployment time … series. Our empirical findings are consistent with the hysteresis hypothesis of unemployment. …