Unemployment persistence in EU countries: new evidence using bounded unit root tests |
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| Authors: | Claudiu Tiberiu Albulescu Aviral Kumar Tiwari |
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| Institution: | 1. Management Department, Politehnica University of Timisoara, Timisoara, Romania;2. Montpellier Business Scholl, Montpellier, France |
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| Abstract: | We apply a series of bounded unit root tests to revisit the unemployment persistence in eight European Union (EU) countries. We find strong evidence in favour of the hysteresis hypothesis in all the cases. This result can be explained by a reduced labour mobility, a decreasing wage inflation and a high uncertainty regarding the future level of unemployment in the EU countries. |
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| Keywords: | Unemployment hysteresis unit root tests bounded series EU countries |
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