German data confirms the theoretical predictions. Keywords: Unemployment ; Hysteresis ; Trade Unions ; Cointegration Contents … Studies;Hysteresis in German Unemployment; Conclusions; Index …The book offers an explanation of unemployment based on a model of wage bargaining between a trade union and an …

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 …