Template-Type: ReDIF-Paper 1.0
Author-Name: Juan Carlos Cuestas
Author-Name: Luis A. Gil-Alana
Title: Unemployment hysteresis, structural changes, non-linearities and fractional integration in Central and Eastern Europe
Abstract: In this paper we aim to analyse  the dynamics of unemployment in a group of Central and Eastern European Countries (CEECs). The CEECs are of special importance for the future of the European Union, given that most of them have recently become member states, and labour flows have been seen to rise with their accession. By means of unit root tests incorporating structural changes and nonlinearities, as well as fractional integration, we find that the unemployment rates for the CEECs are mean reverting processes, which is consistent with the NAIRU hypothesis, although shocks tend to be highly persistent.
File-URL: http://www.ntu.ac.uk/__data/assets/pdf_file/0019/310267/Unemployment-hysteresis.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Creation-Date: 2009-11
Classification-JEL: C32, E24
Keywords: Unemployment, NAIRU, hysteresis, unit roots, fractional integration
Handle: RePEc:nbs:wpaper:2009/6