The study of Hysteresis in Unemployment and Labour Force Participation Rates: Evidence from Japanese regional dataset

• Main Authors: Po-Jung Chen, 陳柏蓉
• Other Authors: De-Chih Liu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/92163169666517538474

碩士 === 淡江大學 === 產業經濟學系碩士班 === 100 === The present paper re-examines the unemployment hysteresis hypothesis in Japanese nine regions between 1983 and 2010. It also considers the hysteresis hypothesis in the labor force participation rate.This research applies the recently developed unit root test which allows switching between hysteresis and the natural rate theory in time - series by Leybourne, Kim and Taylor (2007). The finding shows that unemployment rate and labor force participation rate are subject to one or more switches between I(0) and I(1) in Japanese nine regions, and in line with the hysteresis hypothesis. Thus, both unemployment rate and labor force participation rate should be considered for understanding the dynamics of the labor market in Japan.