External Shocks, Structural Breaks and Unemployment Hysteresis in China

TONG Guang-rong TONG Guang-rong, Yanjun YANG

Abstract


This paper aims to investigate the unemployment hysteresis hypothesis, in which the endogenously determined break points are incorporated, by using annual data of actual urban unemployment rates during 1978-2009 in China. We treat the break date as unknown and utilize recursive, rolling and sequential tests to determine the endogenous structural breaks which are caused by external shocks. Our empirical findings show that three structural breaks existed in the time series of China’s actual urban unemployment rates and we can not reject the unit-root hypothesis, which is consistent with the hysteresis hypothesis of unemployment. Key words: Structural breaks; Unemployment hysteresis; External shocks

Keywords


Structural breaks; Unemployment hysteresis; External shocks

Full Text:

PDF


DOI: http://dx.doi.org/10.3968/j.mse.1913035X20100404.009

Refbacks

  • There are currently no refbacks.


Copyright (c)




Share us to:   


Reminder

  • We are currently accepting submissions via email only.

    The registration and online submission functions have been disabled.

    Please send your manuscripts to mse@cscanada.net,or mse@cscanada.org  for consideration.

    We look forward to receiving your work.

 


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures