• Media type: Report; E-Book
  • Title: What goes up sometimes stays up: Shocks and Institutions as Determinants of Unemployment Persistence
  • Contributor: Amisano, Gianni [Author]; Serati, Massimiliano [Author]
  • Published: Amsterdam and Rotterdam: Tinbergen Institute, 2002
  • Language: English
  • Keywords: J64 ; structural VAR analysis ; Schock ; Schweden ; insiders-outsiders ; E24 ; unemployment persistence ; VAR-Modell ; Italien ; Natürliche Arbeitslosenquote ; Bayesian inference ; Arbeitslosigkeit ; hysteresis ; Schätzung ; Großbritannien ; USA
  • Origination:
  • Footnote: Diese Datenquelle enthält auch Bestandsnachweise, die nicht zu einem Volltext führen.
  • Description: We analyse the determinants of unemployment persistence in four OECDcountries byestimating a structural Bayesian VAR with an informative priorbased on an insiders/outsiders model. We explicitly insert unemployment ben-efits and labour taxes so that our identification is not affected by the Faust andLeeper (1997) critique. We find widespread hysteresis: demand shocks play adominant role in explaining unemployment also in the medium-run. Moreoverreal wages have low sensitivity to cyclical fluctuations and to labour marketdisequilibria. Our results emphasise the real power of the unions and their in-teractions with structural shocks and other institutions as crucial determinantsof hysteresis.
  • Access State: Open Access