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An análisis is made of the structural components of unemployment: rate of entry
or frequency of unemployment, and of its mean duration. Afterwards an analysis is made of the existence of unitary roots in the series of the unemployment rate. The hypothesis of hysteresis in unemployment, absolute as well as partial, is rejected due to empirical evidence. An inadequate use of the Dickey and Fuller’s test may conduce to the opposite conclusion, when only lineal processes are brought to contrast. The inexistence of a unitary root is maintained for the rate of entry, within the mean time of search, and for the mean duration of unemployment. These variables can be well represented with processes of deterministic lineal, broken or quadratic trends.
Castellar, C. E., & Uribe, J. I. (2002). Estructura y evolución del desempleo en el área metropolitana de Cali, 1988-1998: ¿existe histeresis?. Sociedad Y Economía, (3), 109–140. https://doi.org/10.25100/sye.v0i3.4199