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 …

This paper compares models used to explain OECD unemployment. The models suggest that the “natural rate of unemployment …” has been driven up mainly by wage push factors. Panel data on twenty-two OECD countries are used to investigate the …

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 …

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. …

unemployment through hysteresis effects that occur through the rise in long-term unemployment. The estimated increase in structural …The global recession is likely to results in higher structural unemployment for some time in many OECD countries. This … paper assesses how the shock to aggregate unemployment as a result of the economic crisis may be transmitted to structural …

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 …

permanent effects on German unemployment. This difference in hysteresis, however, depends on the sample. Using recursive and …In this paper we compare the unemployment dynamics of the US and Germany with monthly data up to 2008. With data from … recent subsamples.We conclude that hysteresis has turned into a dominating feature also on US labour market more recently. …

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 …