Does Unemployment Hysteresis Equal Employment Hysteresis?

Magnus Gustavsson and Pär Österholm

No 2006:15, Working Paper Series from Uppsala University, Department of Economics

Abstract: This paper investigates if conclusions regarding labour market hysteresis differ depending on whether employment or unemployment rates are studied. Applying a range of unit-root tests to monthly data from Australia, Austria, Canada, Finland, Sweden, the U.K. and the U.S., we find results for employment rates that contrast those based on unemployment rates. In particular, rather than the mixed evidence for hysteresis found using unemployment rates, employment rates result in unequivocal evidence of hysteresis in Australia, Canada and the U.S.. These findings cast doubt on previous conclusions in the literature.

Keywords: Labour market; Persistence; Unit root test (search for similar items in EconPapers)
JEL-codes: C22 E24 J21 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2006-07-10
New Economics Papers: this item is included in nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Economic Record, 2007, pages 159-173.

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Related works:
Journal Article: Does Unemployment Hysteresis Equal Employment Hysteresis? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:2006_015

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