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| Pedro Clavijo-Cortes |
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| ''How persistent is unemployment in major Latin American economies?'' |
| ( 2021, Vol. 41 No.2 ) |
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| This document investigates the degree of unemployment persistence in four major Latin American economies by using Bayesian methods to estimate a generalized stochastic unit root. Among the main results, it is found that the four countries in the sample exhibit a high degree of unemployment persistence. Colombia and Mexico show some periods of explosiveness associated with periods of crisis. Chile and Bazil display the most moderate cases. The study exploits two different channels to explain the unemployment persistence connected with institutional changes and the duality that characterizes developing countries. |
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| Keywords: stochastic unit root, hysteresis, unemployment, Bayesian estimation |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
O5 - Economywide Country Studies: General |
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| Manuscript Received : May 07 2020 | | Manuscript Accepted : Apr 09 2021 |
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