Short Note on the Unemployment Rate of the 'French Overseas Regions'
Université de la Réunion
Banque de France
affiliation not provided to SSRN
Banque de France Working Paper No. 337
This article analyzes the hysteresis hypothesis in the unemployment rates of the four French overseas regions (Guadeloupe, Martinique, Guyana, Reunion) [FORs] over the period 1993-2008. We use standard univariate and panel unit root tests, among them Choi (2006) and Lopez (2009) that account for cross-sectional dependence and have improved performance when the number of countries and the time dimension of the data are limited. Our results cannot reject the null hypothesis of a unit root and so find evidence supporting hysteresis in the unemployment rates for the FORs.
Number of Pages in PDF File: 12
Keywords: panel unit root, unemployment, hysteresis
JEL Classification: C32, F31working papers series
Date posted: July 30, 2011
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