Hysteresis in Unemployment: Evidence from Latin America
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.
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Working Papers biblioteca |
| Language: | English |
| Published: |
Inter-American Development Bank
|
| Subjects: | Financial Crisis and Structural Adjustement, Workforce and Employment, C22 - Time-Series Models • Dynamic Quantile Regressions • Dynamic Treatment Effect Models • Diffusion Processes, C23 - Panel Data Models • Spatio-temporal Models, E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity, J24 - Human Capital • Skills • Occupational Choice • Labor Productivity, J60 - Mobility Unemployment Vacancies and Immigrant Workers: General, WP-04/08, |
| Online Access: | http://dx.doi.org/10.18235/0011139 https://publications.iadb.org/en/hysteresis-unemployment-evidence-latin-america |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | 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. |
|---|