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Hysteresis vs. natural rate of unemployment in Brazil and Chile

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  • Fabio Gomes
  • Cleomar Gomes da Silva

Abstract

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.

Suggested Citation

  • Fabio Gomes & Cleomar Gomes da Silva, 2007. "Hysteresis vs. natural rate of unemployment in Brazil and Chile," Applied Economics Letters, Taylor & Francis Journals, vol. 15(1), pages 53-56.
    • Handle: RePEc:taf:apeclt:v:15:y:2007:i:1:p:53-56
    DOI: 10.1080/13504850600675450
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    References listed on IDEAS

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    1. Hilde Christiane Bjørnland, 1999. "Structural breaks and stochastic trends in macroeconomic variables in Norway," Applied Economics Letters, Taylor & Francis Journals, vol. 6(3), pages 133-138.
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    7. repec:bla:obuest:v:63:y:2001:i:5:p:535-58 is not listed on IDEAS
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    Cited by:

    1. Jean françois Hoarau & Claude Lopez & Michel Paul, 2010. "Short Note on the Unemployment Rate of the “French overseas regions”," Economics Bulletin, AccessEcon, vol. 30(3), pages 2321-2329.
    2. Echavarría-Soto, Juan José & López, Enrique & Ocampo, Sergio & Rodríguez-Niño, Norberto, 2012. "Choques, instituciones laborales y desempleo en Colombia," Chapters, in: Arango-Thomas, Luis Eduardo & Hamann-Salcedo, Franz Alonso (ed.), El mercado de trabajo en Colombia : hechos, tendencias e instituciones, chapter 18, pages 753-794, Banco de la Republica de Colombia.
    3. Omay, Tolga & Shahbaz, Muhammad & Stewart, Chris, 2021. "Is There Really Hysteresis in OECD Countries’ Unemployment Rates? New Evidence Using a Fourier Panel Unit Root Test," MPRA Paper 107691, University Library of Munich, Germany, revised 10 May 2021.

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