Unemployment in Africa: A fractional integration approach

This paper estimates long-memory models to analyse the stochastic behaviour of unemployment in eleven African countries (Botswana, Ethiopia, Ghana, Kenya, Malawi, Mauritius, Nigeria, Senegal, South Africa, Tanzania and Zambia) from the 1960s until 2010. The empirical results provide very strong evid...

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Detalles Bibliográficos
Autores: Caporale, G.M. (Guglielmo M.)|||/items/9eec80b9-3717-46f0-a5da-1d38cae16ad1, Gil-Alana, L.A. (Luis A.)|||/items/a283ece6-b578-452c-9362-8d1a6255b23c
Tipo de recurso: artículo
Fecha de publicación:2018
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/65726
Acceso en línea:https://hdl.handle.net/10171/65726
Access Level:acceso abierto
Palabra clave:Unemployment
Africa
Fractional integration
Descripción
Sumario:This paper estimates long-memory models to analyse the stochastic behaviour of unemployment in eleven African countries (Botswana, Ethiopia, Ghana, Kenya, Malawi, Mauritius, Nigeria, Senegal, South Africa, Tanzania and Zambia) from the 1960s until 2010. The empirical results provide very strong evidence of lack of mean reversion in all series under examination. This suggests that hysteresis models are the most relevant for the African experience (not surprisingly, given the rigidities in their labour markets). Therefore in such countries shocks hitting the unemployment series will have permanent effects, and policy makers should take appropriate action to reverse the effects of negative shocks.