Does Hysteresis in Unemployment Occur in OECD Countries? Evidence from Parametric and Non-Parametric Panel Unit Roots Tests

• Main Authors: Liew, Venus Khim-Sen, Puah, Chin-Hong, Chia, Ricky Chee-Jiun
• Format: Article
• Language: English
• Published: Munich Personal RePEc Archive 2009
• Subjects: AC Collections. Series. Collected works
• Online Access: http://ir.unimas.my/id/eprint/3075/1/Venus.pdf; http://ir.unimas.my/id/eprint/3075/; http://mpra.ub.uni-muenchen.de/
• Institution: Universiti Malaysia Sarawak

This study tests the hysteresis hypothesis of unemployment in fourteen OECD countries by examining the stationarity of unemployment rates using several panel unit root tests. Empirical results show that the hysteresis hypothesis cannot be rejected for majority of the OECD when the tests are conducte...