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Testing the Unemployment Hysteresis for G-20 Countries

Testing the Unemployment Hysteresis for G-20 Countries
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Author(s): Veli Yilanci (Sakarya University, Turkey)and Mahmut Unsal Sasmaz (Usak University, Turkey)
Copyright: 2018
Pages: 8
Source title: Handbook of Research on Supply Chain Management for Sustainable Development
Source Author(s)/Editor(s): Ulas Akkucuk (Uşak University)
DOI: 10.4018/978-1-5225-5757-9.ch019

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Abstract

In this chapter, the authors analyze the validity of unemployment hysteresis for G-20 countries, namely Australia, Brazil, Canada, France, Germany, Indonesia, Italy, Japan, Korea, Mexico, Russia, South Africa, Turkey, United Kingdom, and USA for the 1960–2014 period. For this purpose, they examine the stationarity of the unemployment rates by using ADF unit root test and Fourier ADF (FADF) unit root tests. FADF unit root test is a recently introduced test whose power is not affected by the number, location, and form of the breaks. The results of the tests show that the unemployment hysteresis is valid for some of the countries.

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