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    Title: Hysteresis Hypohesis in Unemployment and Labour Force Participation Rates: Evidence from Australian States and Territories
    Authors: Liu, De-chih;Sun, Chin-hwa;Lin, Pei-chien
    Contributors: 淡江大學產業經濟學系
    Keywords: Hysteresis hypothesis;unemployment;labor for participation;panel unit root;structural breaks
    Date: 2012-06
    Issue Date: 2012-06-04 14:58:34 (UTC+8)
    Publisher: Wiley-Blackwell Publishing Asia
    Abstract: This article simultaneously investigates the hysteresis hypothesis of unemployment and labour force participation using regional level data in Australia. The conventional univariate and panel unit root tests
    indicate that the hysteresis hypothesis cannot be rejected for most of the regions in Australia. To further confirm if the hysteresis finding in unemployment and labour force participation results from not considering structural breaks. We employ a panel stationarity test recently developed by Carrion-i-Silvestre et al. (2005), which considers multiple structural breaks and cross-sectional dependence. The test results lend support for unemployment hysteresis and participation regime-wise stationarity. Accordingly, the findings imply that a temporary shock may have permanent effects on the unemployment rate but not on labour
    force participation in Australia and thus call for policies aimed at improving the adjustment mechanism in unemployment.
    Relation: Australian Economic Papers 51(2), pp.71-84
    DOI: 10.1111/j.1467-8454.2012.00423.x
    Appears in Collections:[產業經濟學系暨研究所] 期刊論文

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