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Spanish Regional Unemployment

Disentangling the Sources of Hysteresis

  • Alejandro García-Cintado
  • Diego Romero-Ávila
  • Carlos Usabiaga

Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)

Table of contents

  1. Front Matter
    Pages i-ix
  2. Alejandro García-Cintado, Diego Romero-Ávila, Carlos Usabiaga
    Pages 1-7
  3. Alejandro García-Cintado, Diego Romero-Ávila, Carlos Usabiaga
    Pages 9-21
  4. Alejandro García-Cintado, Diego Romero-Ávila, Carlos Usabiaga
    Pages 23-43
  5. Alejandro García-Cintado, Diego Romero-Ávila, Carlos Usabiaga
    Pages 45-49
  6. Alejandro García-Cintado, Diego Romero-Ávila, Carlos Usabiaga
    Pages 51-52
  7. Back Matter
    Pages 53-68

About this book

Introduction

This work investigates the time series properties of the unemployment rate of the Spanish regions over the period 1976-2011. For that purpose, the authors employ the PANIC procedures of Bai and Ng (2004), which allows to decompose the observed unemployment rate series into common factor and idiosyncratic components. This enables the authors to identify the exact source behind the hysteretic behaviour found in Spanish regional unemployment. Overall, the analysis with three different proxies for the excess of labour supply renders strong support for the hysteresis hypothesis, which appears to be caused by a common stochastic trend driving all the regional unemployment series. In the second part of the analysis the authors try to determine the macroeconomic and institutional factors that are able to explain the time series evolution of the common factor, and in turn help us shed light on the ultimate sources of hysteresis. The reader shall see how the variables that the empirical analysis emphasises as relevant closely fit into the main causes of the Spanish unemployment behaviour. Finally, some policy considerations drawn from the results are presented.

Keywords

Common Factor PANIC Analysis Persistence Spanish Labour Market Unemployment Rate

Authors and affiliations

  • Alejandro García-Cintado
    • 1
  • Diego Romero-Ávila
    • 2
  • Carlos Usabiaga
    • 3
  1. 1.Pablo de Olavide UniversitySevilleSpain
  2. 2.Pablo de Olavide UniversitySevilleSpain
  3. 3.Pablo de Olavide UniversitySevilleSpain

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-03686-1
  • Copyright Information The Author(s) 2014
  • Publisher Name Springer, Cham
  • eBook Packages Business and Economics
  • Print ISBN 978-3-319-03685-4
  • Online ISBN 978-3-319-03686-1
  • Series Print ISSN 2191-5504
  • Series Online ISSN 2191-5512
  • Buy this book on publisher's site
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