Hysteresis vs. natural rate of unemployment in Brazil and Chile

This article examines the hysteresis hypothesis in the unemployment rates of Brazil and Chile using an LM unit root test with two endogenous breaks. The phenomenon is confirmed for both countries. However, the hysteresis hypothesis is able to account for only a small part of the unemployment evoluti...

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Bibliographic Details
Published inApplied economics letters Vol. 15; no. 1; pp. 53 - 56
Main Authors Gomes, Fabio, da Silva, Cleomar Gomes
Format Journal Article
LanguageEnglish
Published London Routledge 01.01.2008
Taylor & Francis LLC
Subjects
Brazil
Chile
Econometric models
Economic analysis
Economic conditions
Economic theory
Hypotheses
Labor market
Studies
Unemployment
Brazil
Chile
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Summary:This article examines the hysteresis hypothesis in the unemployment rates of Brazil and Chile using an LM unit root test with two endogenous breaks. The phenomenon is confirmed for both countries. However, the hysteresis hypothesis is able to account for only a small part of the unemployment evolution.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:1350-4851
1466-4291
DOI:10.1080/13504850600675450