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The Resource Is Unemployment on Steroids in Advanced Economies?

Is Unemployment on Steroids in Advanced Economies?

Label
Is Unemployment on Steroids in Advanced Economies?
Title
Is Unemployment on Steroids in Advanced Economies?
Creator
Contributor
Author
Subject
Genre
Language
eng
Summary
Despite conventional macroeconomic theory is based on the idea that demand shocks can only have temporary effects on unemployment, several European economies display highly persistent unemployment dynamics. The theory of hysteresis challenges this view and points out that, under certain conditions, demand disturbances can have permanent effects. In this paper, we find strong empirical evidence of unemployment hysteresis in advanced economies since the 1990s. Relying on an identification scheme instigated by an insider/outsider model, we study the effects of demand shocks allowing for cross-country heterogeneous dynamics, and exploit such heterogeneity to investigate what institutional settings have the potential to soften or amplify the effects of demand shocks. Our results indicate that strengthening labor market institutions that promote a faster adjustment of real wages, removing disincentives for firms to hire and for workers to be employed, and improving the matching between labor supply and labor demand can lessen the effects of adverse demand shocks and lead to a faster reversion of unemployment rates to pre-shock levels
Member of
Cataloging source
EBLCP
http://bibfra.me/vocab/lite/collectionName
IMF eLibrary
http://library.link/vocab/creatorName
Di Bella, C. Gabriel
Index
no index present
Literary form
non fiction
Nature of contents
dictionaries
http://library.link/vocab/relatedWorkOrContributorName
Grigoli, Francesco
http://library.link/vocab/subjectName
  • Business Fluctuations
  • Employment
  • Price Level
  • Unemployment
  • All Countries
Label
Is Unemployment on Steroids in Advanced Economies?
Instantiates
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover; Contents; 1 Introduction; 2 Theoretical Setup; 3 Stylized Facts; 3.1 Unemployment Persistence; 3.2 Unemployment and Wage Ination; 4 Empirical Strategy and Shock Identification; 5 Results; 5.1 Heterogeneous PSVAR; 5.2 The Role of Labor Market Institutions; 5.3 Robustness; 6 Conclusions; References; A Sample; B Data Sources; List of Figures; 1 Unemployment Rate Levels and Changes; 2 Autocorrelation of the Unemployment Rate; 3 Coefficient on Lag Unemployment rate of an AR(1) Regression; 4 Unemployment Rate and Wage Inflation; 5 Phillips Curve; 6 IRF Distribution from Heterogeneous PSVAR
  • 7 Bootstrap of Heterogeneous PSVAR8 FEVD; 9 IRFs with Alternative Identification Strategies; List of Tables; 1 Unit Root Tests for Unemployment Rates Based on ADF Test; 2 Unit Root Tests for Unemployment Rates Based on Johansen Trace Test; 3 Panel Unit Root Tests for Unemployment Rates; 4 Reduced-Form Phillips Curve Estimations; 5 Cointegration Tests between Unemployment Rate and Wage Inflation; 6 Panel Cointegration Tests between Unemployment Rate and Wage Inflation; 7 Regressions of Unemployment Responses; 8 Regressions of Unemployment Responses at Specific Horizons
Control code
1048789790
Dimensions
unknown
Extent
1 online resource (34 pages)
Form of item
online
Isbn
9781484370650
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)1048789790
Label
Is Unemployment on Steroids in Advanced Economies?
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover; Contents; 1 Introduction; 2 Theoretical Setup; 3 Stylized Facts; 3.1 Unemployment Persistence; 3.2 Unemployment and Wage Ination; 4 Empirical Strategy and Shock Identification; 5 Results; 5.1 Heterogeneous PSVAR; 5.2 The Role of Labor Market Institutions; 5.3 Robustness; 6 Conclusions; References; A Sample; B Data Sources; List of Figures; 1 Unemployment Rate Levels and Changes; 2 Autocorrelation of the Unemployment Rate; 3 Coefficient on Lag Unemployment rate of an AR(1) Regression; 4 Unemployment Rate and Wage Inflation; 5 Phillips Curve; 6 IRF Distribution from Heterogeneous PSVAR
  • 7 Bootstrap of Heterogeneous PSVAR8 FEVD; 9 IRFs with Alternative Identification Strategies; List of Tables; 1 Unit Root Tests for Unemployment Rates Based on ADF Test; 2 Unit Root Tests for Unemployment Rates Based on Johansen Trace Test; 3 Panel Unit Root Tests for Unemployment Rates; 4 Reduced-Form Phillips Curve Estimations; 5 Cointegration Tests between Unemployment Rate and Wage Inflation; 6 Panel Cointegration Tests between Unemployment Rate and Wage Inflation; 7 Regressions of Unemployment Responses; 8 Regressions of Unemployment Responses at Specific Horizons
Control code
1048789790
Dimensions
unknown
Extent
1 online resource (34 pages)
Form of item
online
Isbn
9781484370650
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)1048789790

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