Testing hysteresis for the US and UK involuntary part-time employment

Emilio Congregado, Javier Garcia-Clemente, Nicola Rubino and Inmaculada Vilchez

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we test the persistence of involuntary part-time employment, making use of large historical series for the US and UK. To evaluate the robustness of our results a comprehensive macro-econometric approach, a battery of panel and time series unit root/stationarity tests were performed, also allowing for flexible specifications as fractional integration and structural breaks in the series. Our results confirm that underemployment in both countries has not returned to its pre-recession levels providing robust evidence about the existence of a long memory process in the involuntary part-time employment and a structural break in the mean of the series in the Great Recession surroundings. Importantly, the two phenomena, identified by a sudden deterministic break in the levels of the models employed and by a unit root process of order one or higher, coexist an interact together.

Keywords: Involuntary part-time; underemployment; long-memory hysteresis; persistence; structural breaks (search for similar items in EconPapers)
JEL-codes: C22 E24 J21 (search for similar items in EconPapers)
Date: 2023-07-27
New Economics Papers: this item is included in nep-his
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:118115

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