Unemployment in Africa: A Fractional Integration Approach

Unemployment in Africa: A Fractional Integration Approach

Author: 
Caporale, Guglielmo Maria
Place: 
New York
Publisher: 
John Wiley & Sons Publishing Company
Date published: 
2018
Record type: 
Region: 
Responsibility: 
Gil?Alana, Luis Alberiko, jt. author
Journal Title: 
South African Journal of Economics
Source: 
South African Journal of Economics, Vol. 86, No. 1, March 2018, pp. 76-81
Abstract: 

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.

Language: 
Date created: 
Thursday, December 6, 2018