Testing for the unemployment hysteresis in Turkey

Date

2013

Author

Akçay, Sıla

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This study tests for hysteresis of unemployment for Turkey over the period of January 2005 – May 2013. Allowing for the business cycle asymmetry of unemployment, with steep increases during recessions, followed by more gradual declines during expansions, we employ the threshold autoregressive (TAR) type unit root test of Caner and Hansen (2001). The empirical findings reveal that the nonlinear unit root test provides strong evidence in favour of the natural rate hypothesis while the standard linear unit root tests fails to do so.

Subject Keywords

Unemployment., Hysteresis (Economics), Unemployed.

URI

http://etd.lib.metu.edu.tr/upload/12616485/index.pdf
https://hdl.handle.net/11511/22925

Collections

Graduate School of Social Sciences, Thesis