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Published March 26, 2024 | Version v1
Journal article Embargoed

How World Unemployment Behaves in Thirty Years: Evidence from G-20 Countries

Authors/Creators

  • 1. Department of Economics, Inonu University
  • 2. Department of Economics, Necmettin Erbakan University

Description

Abstract: At the end of 21st century, the world economy transited into a different pathway. As many markets, transitions were experienced in labor market. Globalization, technological change, labor mobility and many other changes have affected labor market. This study investigates whether validity of hysteresis and/or natural rate of unemployment hypotheses is changed or not because of transition. We employ a battery of unit root tests. Results imply that natural rate of unemployment hypothesis is valid in Australia, Germany, India and Russia while hysteresis hypothesis is valid in Brazil, France, Italy, Korean Republic, Mexico, Saudi Arabia, United Kingdom and United States of America.

Keywords: Hysteresis Hypothesis, Natural Rate of Unemployment, Fourier Unit Root Test

 JEL Classification Number: J01, J64, C33

Files

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