Are Unemployment Rates in OECD Countries Stationary? Evidence from Univariate and Panel Unit Root Tests

Khraief, Naceur; Shahbaz, Muhammad; Heshmati, Almas; Azam, Muhammad

doi:10.2139/ssrn.2708384

Cited by 9 publications

(6 citation statements)

References 23 publications

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“…This finding entails that an increase in FI development results in a decrease in labor productivity in SSA. It is a result of the developing nature of FI within the region and is in agreement with Khraief et al (2020) andBakas et al (2020).…”

Section: Discussionsupporting

confidence: 90%

Effects of financial development and capital accumulation on labor productivity in sub-Saharan Africa: new insight from cross sectional autoregressive lag approach

Zoaka

Güngör

2023

Financ Innov

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This study aims to shed light on the effects of financial development and accumulation of capital on the productivity of labor in the sub-Sahara African region within the period of 1990–2018. In this work, we used the (dynamic) common correlated effects estimator-mean group and additional techniques such as cross-section autoregressive distributed lag to calibrate the sample into the African subregion to ensure robustness. The findings reveal that financial progress in the region over time leads to an increase in productivity of labor and also the accumulation of capital. Furthermore, financial markets have a progressive impact on the productivity of labor within sub-Saharan African regions. We extend the very limited literature on the nexus between financial development and labor productivity by incorporating capital accumulation into our model which has not been previously studied.

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Section: Discussionsupporting

confidence: 90%

Effects of financial development and capital accumulation on labor productivity in sub-Saharan Africa: new insight from cross sectional autoregressive lag approach

Zoaka

Güngör

2023

Financ Innov

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“…A multitude of models assess the effects on unemployment of the macroeconomic variables used in the empirical literature, but the one that is best suited to our case is based on the work of Emeka (2018) and Khraief et al (2020). Hence the following function:…”

Section: Methodology Of Studymentioning

confidence: 99%

“…Liew, Ricky, and Chin-Hong (2012) point out that the stabilization of government policies and the efficiency of labor market institutions have played a central role in maintaining sustainable unemployment rates in the countries of the Organization for Economic Cooperation and Development (OECD). Khraief et al (2020) show that macroeconomic policies are unlikely to have a lasting long-term effect on OECD unemployment rates. Also, they also argue that the labor market is heavily regulated, and training and employment programs are pillars of state intervention policies.…”

Section: Highlighting Between Governance On Unemploymentmentioning

confidence: 98%

“…The link between good public governance and labor market performance has been adequately studied in previous studies. The work of Khraief, Shahbaz, Heshmati, and Azam (2020) note that state intervention policies are needed because they greatly influence labor market training and employment program development. The latter add that state intervention remains actively important even in a liberalized economy, where there are the impact of certain factors like capital mobility, capital-labor substitution and the influence of capital technology on the relocation of production (Khraief et al, 2020).…”

Section: Highlighting Between Governance On Unemploymentmentioning

confidence: 99%

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Is the effect of disaggregated public spending on unemployment reinforced by governance in Cameroon?

Patrick

Gilbert

Tchouassi

et al. 2023

5004

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In this article, we sought to examine the effect of Cameroon's public expenditure, with a focus on governance, on the reduction of unemployment from 1988 to 2020. By implementing a multiple linear regression model and applying the OLS method, we found that only military spending significantly contributed to the decrease in youth unemployment. Nonetheless, the efficacy of all types of public expenditure is heavily contingent upon socio-economic conditions. It is apparent that corruption and economic crises contribute greatly to the unemployment rate, hence why public entities must make greater efforts to form a strict institutional framework governing the labor market and invest in anti-exogenous shock programs. This would ensure that unemployment rates can be decreased systematically and substantially.

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“…Finally, the Unemployment Hysteresis Hypothesis claims that shocks to unemployment leave permanent effects (Blanchard and Summers, 1986). In the literature on OECD countries, Song and Wu (1998), Everaert (2001), Roed (2002), Feve et al (2003, Özcan (2012), Bakas and Makhlouf (2020), Khraief et al (2020), Dedeoğlu (2021) provide evidence that the Unemployment Hysteresis Hypothesis is valid; Papell et al (2000), Camarero and Tamarit (2004), Camarero et al (2006), Lee and Chang (2008), Ener and Arıca (2011), Yalçınkaya and Kaya (2017) provided concrete findings on the validity of the Natural Ratio Hypothesis. In addition, when the studies in the literature are examined, it is determined that unit root tests with structural break are preferred intensively.…”

Section: Sonuç Ve Değerlendi̇rmementioning

confidence: 99%

Oecd Ülkeleri̇nde İşsi̇zli̇k Hi̇steri̇si̇ni̇n İncelenmesi̇: Doğrusal Olmayan Fourier Kirilmali Testlerden Kanitlar

Kılıç

Ergen

Yavuz

2022

Nişantaşı Üniversitesi Sosyal Bilimler Dergisi

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Çalışmanın amacı, 36 OECD ülkesinde İşsizlik Histerisi Hipotezi’nin geçerliliğini ampirik olarak sınamaktır. Ampirik analiz, her ülke için en geniş dönemi kapsayacak şekilde aylık bazda işsizlik oranı değişkeni üzerinden farklı varsayımlara ve özelliklere sahip birim kök testleri ile yapılmaktadır. Bulgulara göre, verilerin normal dağılımını varsayan ADF testinde ülkelerin %75’inde, verilerin normal dağılım göstermediğini varsayan RALS-ADF testinde ülkelerin %67’sinde, verilerin doğrusal olmayan bir sürece sahip olduğunu varsayan KSS testinde ülkelerin %56’sında, keskin kırılmaları dikkate alan ve verilerin normal dağıldığını varsayan ZA testinde ülkelerin %83’ünde, fourier kırılmaları dikkate alan ve verilerin normal dağıldığını varsayan Fourier-ADF testinde ülkelerin %47’sinde ve son olarak fourier kırılmaları dikkate alan ve verilerin doğrusal olmayan bir sürece sahip olduğunu varsayan Fourier-KSS testinde ülkelerin %53’ünde İşsizlik Histerisi Hipotezi geçerlidir. Sonuçlar, İşsizlik Histerisi Hipotezi’nin geçerli olduğu ülke sayısının fourier kırılmaları dikkate alan testlerde azaldığını ortaya koymaktadır. Özetle, Fourier-ADF testi dışındaki tüm birim kök testlerinde OECD ülkelerinde ağırlıklı olarak histeri etkisinin varlığına işaret etmektedir.

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Are Unemployment Rates in OECD Countries Stationary? Evidence from Univariate and Panel Unit Root Tests

Cited by 9 publications

References 23 publications

Effects of financial development and capital accumulation on labor productivity in sub-Saharan Africa: new insight from cross sectional autoregressive lag approach

Effects of financial development and capital accumulation on labor productivity in sub-Saharan Africa: new insight from cross sectional autoregressive lag approach

Is the effect of disaggregated public spending on unemployment reinforced by governance in Cameroon?

Oecd Ülkeleri̇nde İşsi̇zli̇k Hi̇steri̇si̇ni̇n İncelenmesi̇: Doğrusal Olmayan Fourier Kirilmali Testlerden Kanitlar

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