Hysteresis in unemployment: evidence from sector-specific unemployment in Turkey

Salih Barışık and Emrah Çevik

MPRA Paper from University Library of Munich, Germany

Abstract: High levels of inflation and unemployment have been experienced together in the world after 1970’s. Efforts of decreasing inflation have been achieved in the world after 1990’s. The fact that there has been no evidence the unemployment rate beginning to decrease despite the increasing growth rates in the USA and Europe countries recalls hysteresis effect. This phenomenon observed in Turkey after 1994 and 2001 crises. This paper examines hysteresis effect in sector-specific unemployment in Turkey. We apply conventional unit root tests and Zivot-Andrews structural break test to determine the presence of hysteresis effect. Hysteresis effect is only found in Manufacturing and Finance sectors.

Keywords: Hysteresis; Structural Break; Unemployment (search for similar items in EconPapers)
JEL-codes: C12 C32 J64 (search for similar items in EconPapers)
Date: 2009, Revised 2009
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Published in The Empirical Economics Letters 3.9(2009): pp. 255-260

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:71483

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