Unemployment hysteresis in the English-speaking Caribbean: evidence from non-linear models

Roland Craigwell, Sebastien Mathouraparsad and Alain Maurin

MPRA Paper from University Library of Munich, Germany

Abstract: In the Caribbean Basin, as in many other parts of the world, unemployment, with rates between 15 and 30 percent, has become one of the major problems affecting these societies. This article highlights the specific characteristics of Caribbean unemployment, contrasting them with those observed in the industrialized and developed nations. Secondly, it summarizes the main ideas that have been proposed to explain the problem of unemployment hysteresis and discusses their appropriateness in the case of the countries under consideration. Finally, it uses the framework of threshold models and processes with nonlinearities in the mean to empirically examine the hypothesis of hysteresis. The results supported these non- linear specifications: for Barbados, an LSTAR model is preferred while in the case of Trinidad and Tobago, an ESTAR specification is selected.

Keywords: Unemployment persistence; Unit root tests; Non-linear models (search for similar items in EconPapers)
JEL-codes: C2 E24 J64 (search for similar items in EconPapers)
Date: 2011
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 (2)

Published in International Research Journal of Finance and Economics 65 (2011): pp. 98-111

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/33440/1/MPRA_paper_33440.pdf original version (application/pdf)

Related works:
Working Paper: Unemployment hysteresis in the English-speaking Caribbean: evidence from non-linear models (2011)
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:pra:mprapa:33440

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().