Unraveling Unemployment Hysteresis in Nordic Countries: A Multifaceted Analysis of Age, Gender, and Frequency Differentials

Yılancı V., Kırca M., Canbay Ş., Sağlam M. S.

INTERNATIONAL JOURNAL OF MANPOWER, no.Forthcoming, pp.1-27, 2023 (SSCI)

  • Publication Type: Article / Article
  • Publication Date: 2023
  • Doi Number: 10.1108/ijm-03-2023-0147
  • Journal Name: INTERNATIONAL JOURNAL OF MANPOWER
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, Educational research abstracts (ERA), INSPEC, vLex
  • Page Numbers: pp.1-27
  • Çanakkale Onsekiz Mart University Affiliated: Yes

Abstract

Purpose: This study aims to test the unemployment hysteresis hypothesis for Nordic countries by

considering age and gender differentials at various frequencies.

Design/methodology/approach: First, we test the linearity of the unemployment series and apply

appropriate unit root tests based on the linearity test results. We use these tests for both original

and wavelet-decomposed unemployment rates.

Findings: Our findings indicate that the results obtained from the original and decomposed series

differ. While we find evidence of unemployment hysteresis in the six unemployment rates in the

short-run, we observe supportive results for hysteresis in the three unemployment rates in the long-

run.

Originality/Value: We take into account different age and gender groups. Furthermore, we

propose a testing strategy for unemployment hysteresis that considers the nonlinearity and

structural breaks in unemployment rates. Finally, we determine whether the unemployment

hysteresis is valid at various frequencies.