Hysteresis in Unemployment:Evidence from Latin America

Matias Mednik (), Cesar Rodriguez and Inder Ruprah ()
Additional contact information
Matias Mednik: Columbia University - School of International and Public Affairs.

No 408, OVE Working Papers from Inter-American Development Bank, Office of Evaluation and Oversight (OVE)

Abstract: This paper tests the hysteresis hypothesis in unemployment for 13 Latin American countries covering the period 1980-2005. The tests exploit the time series and the cross sectional variation of the series, and allows for cross section dependence and a different number of endogenously determined structural breakpoints. The findings give support to the hysteric dynamic hypothesis for the majority of the countries analyzed. The implications of the results have ramifications regarding macro-stabilization, structural reform, and the design of social safety protection.

Keywords: Unemployment hysteresis; unit root test; panel unit root test; cross-section dependence. (search for similar items in EconPapers)
JEL-codes: C22 C23 E24 J24 J60 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2008-03
New Economics Papers: this item is included in nep-lab, nep-lam and nep-mac
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Hysteresis in unemployment: Evidence from Latin America (2012)
Working Paper: Hysteresis in Unemployment: Evidence from Latin America (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:ovewps:0408

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