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 …

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and … equilibrium paths. Hysteresis is viewed as the result of a selection between these different equilibrium paths. We use this model … of the 1970’s may have played a central role in generating hysteresis. …

Most studies that use classical unit-root tests in OECD countries support the unemployment hysteresis hypothesis … number of panel unit root tests, which are known to overcome specification problems, to check the existence of hysteresis in …, refuting the unemployment hysteresis hypothesis. …

This paper re-examines the empirical validity of the hysteresis hypothesis in unemployment rates in terms of education … unemployment rates by primary and secondary education attainment in total unemployment, and therefore the existence of hysteresis … while there is no evidence of hysteresis for unemployment rates by tertiary education. …

inflation and unemployment. During an upswing, firms will take on and train new workers. These workers are, however, not shed …

consistent with existing theories of unemployment hysteresis that focus on depreciation of human capital and search activity …On the basis of macro data from 10 OECD countries, I find that the job vacancy rate outperforms the unemployment rate … as a reliable measure of domestic inflationary pressure. Moreover, while the rate of unemployment affects inflation …

This paper presents a wage bargaining model and its relation to hysteresis hypothesis in unemployment. Hysteresis in … unemployment is used do denote a situation, in which the equlibrium rate is determined by the path of the actual unemployment rate … wage bargaining. For a better plausibility of hysteresis hypothesis, one may examine whether a more general wage setting …

The view that high unemployment in West Germany and other European countries is caused by a path dependence effect - or … "hysteresis" effect - is quite popular among economists. However, because of an identification problem, much of the empirical … is argued that in a cointegration framework it is reasonable to define hysteresis as the absence of weak exogeneity of …