Does the unemployment rate present hysteresis?
) (Universidad del Valle) Abstract This article analyses unemployment’s structural components. The changes observed in the unemployment rate in Cali during the period from 1988 to 1994 were caused by a decrease in average job-search time or increased rate of ceasing to be unemployed. The empirical evidence rejected the hypothesis regarding total or partial hysteresis in unemployment. A decrease in this rate cannot be explained by endogenous factors if the unemployment rate does not have unit root (total or partial hysteresis thus not being found). Labour market flexibility policies are consequently not appropriate for solving the problem Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
