Hysteresis in Unemployment: Evidence from Norwegian Counties

Kåre Johansen ()

Working Paper Series from Department of Economics, Norwegian University of Science and Technology

Abstract: The paper tests hysteresis effects in unemployment using aggregate and panel data for Norway. While tests using aggregate or county— specific time series do not reject the null of unit root hysteresis, the panel tests firmly reject the null. When a one—time structural break is incorporated, the unit root hypothesis is rejected (or nearly so) in most counties. All results reveal a high degree of unemployment persistence, but the speed of adjustment is much higher when we allow for a change in mean.

Keywords: Hysteresis; panel unit root tests; structural break (search for similar items in EconPapers)
JEL-codes: C22 C23 J64 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2002-08-20
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:nst:samfok:0602

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