Unemployment persistence with an evolutionary perspective: job creation or destruction (or both)?

Liu De-Chih ()
Additional contact information
Liu De-Chih: National Taipei University

Evolutionary and Institutional Economics Review, 2023, vol. 20, issue 1, No 4, 83-109

Abstract: Abstract This study analyzes the linkage between dynamic persistence of unemployment and the demand side of the labor market—job creation and destruction with an evolutionary perspective. The Neo-Austrian model predicts that: (i) unemployment is not featured as stationary over the entire sample period. (ii) unemployment is in disequilibria if job creation or job destruction (or both) is in out-of-equilibrium adjustment; (iii) regions with more unemployment compensation benefits or co-ordination problem are featured by higher unemployment persistence compared with low unemployment insurance benefits. The empirical analysis using aggregate-level and state-level data provides empirical support to these predictions. Using a unique dataset, this study finds that the persistence in the unemployment rate is a job destruction phenomenon.

Keywords: Unemployment; Hysteresis; Out-of-equilibrium dynamics; Job creation; Job destruction (search for similar items in EconPapers)
JEL-codes: J2 J4 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40844-022-00246-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eaiere:v:20:y:2023:i:1:d:10.1007_s40844-022-00246-4

Ordering information: This journal article can be ordered from
https://www.springer ... theory/journal/40844

DOI: 10.1007/s40844-022-00246-4

Access Statistics for this article

Evolutionary and Institutional Economics Review is currently edited by Kiichiro Yagi, Yuji Aruka and Takahiro Fujimoto

More articles in Evolutionary and Institutional Economics Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().