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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| Format: | Article |
| Language: | English |
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Munich Personal RePEc Archive
2009
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| Online Access: | http://ir.unimas.my/id/eprint/3075/ http://ir.unimas.my/id/eprint/3075/1/Venus.pdf |
| _version_ | 1848835137922400256 |
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| 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 |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-15T06:03:06Z |
| format | Article |
| id | unimas-3075 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:03:06Z |
| publishDate | 2009 |
| publisher | Munich Personal RePEc Archive |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-30752022-01-20T02:40:06Z http://ir.unimas.my/id/eprint/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/id/eprint/3075/1/Venus.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/ |
| 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 |
| title | 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_short | 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 |
| topic | AC Collections. Series. Collected works |
| url | http://ir.unimas.my/id/eprint/3075/ http://ir.unimas.my/id/eprint/3075/ http://ir.unimas.my/id/eprint/3075/1/Venus.pdf |