Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests

Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests

This study tests the hysteresis hypothesis of unemployment in fourteen OECD countries by examining the stationarity of unemployment rates using several panel unit root tests. Empirical results show that the hysteresis hypothesis cannot be rejected for majority of the OECD when the tests are conducte...

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Main Authors: Liew, Venus Khim-Sen, Puah, Chin-Hong, Chia, Ricky Chee-Jiun
Format: Article
Language:English
Published: Munich Personal RePEc Archive 2009
Subjects:
AC Collections. Series. Collected works
Online Access:http://ir.unimas.my/3075/
http://ir.unimas.my/3075/
http://ir.unimas.my/3075/1/Does%2BHysteresis%2Bin%2BUnemployment%2BOccur%2Bin%2BOECD%2BCountries%2BEvidence%2Bfrom%2BParametric%2Band%2BNon-Parametric%2BPanel%2BUnit%2BRoots%2BTests.pdf
id unimas-3075
recordtype eprints
spelling unimas-30752016-04-14T00:51:46Z http://ir.unimas.my/3075/ Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests Liew, Venus Khim-Sen Puah, Chin-Hong Chia, Ricky Chee-Jiun AC Collections. Series. Collected works This study tests the hysteresis hypothesis of unemployment in fourteen OECD countries by examining the stationarity of unemployment rates using several panel unit root tests. Empirical results show that the hysteresis hypothesis cannot be rejected for majority of the OECD when the tests are conducted on the basis of individual countries.However, rejection is obtained when cross-country interdependence in unemployment rates is incorporated in the estimation. Therefore, it is crucial to consider the cross-country labor markets interdependence when testing the hysteresis hypothesis as the labor market institutions and the stabilization policy of the labor markets in these OECD countries can play an important role in maintaining the unemployment to sustainable levels. Munich Personal RePEc Archive 2009 Article NonPeerReviewed text en http://ir.unimas.my/3075/1/Does%2BHysteresis%2Bin%2BUnemployment%2BOccur%2Bin%2BOECD%2BCountries%2BEvidence%2Bfrom%2BParametric%2Band%2BNon-Parametric%2BPanel%2BUnit%2BRoots%2BTests.pdf Liew, Venus Khim-Sen and Puah, Chin-Hong and Chia, Ricky Chee-Jiun (2009) Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests. http://mpra.ub.uni-muenchen.de/
repository_type Digital Repository
institution_category Local University
institution Universiti Malaysia Sarawak
building UNIMAS Institutional Repository
collection Online Access
language English
topic AC Collections. Series. Collected works
spellingShingle AC Collections. Series. Collected works
Liew, Venus Khim-Sen
Puah, Chin-Hong
Chia, Ricky Chee-Jiun
Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests
description This study tests the hysteresis hypothesis of unemployment in fourteen OECD countries by examining the stationarity of unemployment rates using several panel unit root tests. Empirical results show that the hysteresis hypothesis cannot be rejected for majority of the OECD when the tests are conducted on the basis of individual countries.However, rejection is obtained when cross-country interdependence in unemployment rates is incorporated in the estimation. Therefore, it is crucial to consider the cross-country labor markets interdependence when testing the hysteresis hypothesis as the labor market institutions and the stabilization policy of the labor markets in these OECD countries can play an important role in maintaining the unemployment to sustainable levels.
format Article
author Liew, Venus Khim-Sen
Puah, Chin-Hong
Chia, Ricky Chee-Jiun
author_facet Liew, Venus Khim-Sen
Puah, Chin-Hong
Chia, Ricky Chee-Jiun
author_sort Liew, Venus Khim-Sen
title Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests
title_short Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests
title_full Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests
title_fullStr Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests
title_full_unstemmed Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests
title_sort does hysteresis in unemployment occur in oecd countries? evidence from parametric and non-parametric panel unit roots tests
publisher Munich Personal RePEc Archive
publishDate 2009
url http://ir.unimas.my/3075/
http://ir.unimas.my/3075/
http://ir.unimas.my/3075/1/Does%2BHysteresis%2Bin%2BUnemployment%2BOccur%2Bin%2BOECD%2BCountries%2BEvidence%2Bfrom%2BParametric%2Band%2BNon-Parametric%2BPanel%2BUnit%2BRoots%2BTests.pdf
first_indexed 2018-09-06T14:55:37Z
last_indexed 2018-09-06T14:55:37Z
_version_ 1610870410920853504

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