Author

Period/Country

Methodology

Variables used

Main results

Observations

Chang (2011)

1960-2009/17 OECD countries

Unit root tests with Fourier function

Unemployment rate

Presence of the hysteresis effect in 11 countries out of 17 in total

No consideration of tests with breaks

Lee (2010)

1960-2008/29 OECD countries

Linear and nonlinear unit root panel tests

Unemployment rate

Linear unit root tests show the effect of hysteresis in 23 out of a total of 29 countries

Nonlinear unit root tests show the effect of hysteresis in 6 countries out of 29 in total

Weaknesses of linear unit root tests compared to nonlinear unit root tests

Pikoko & Andrew Phiri (2018)

2008q1-2017q2/South Africa

Individual and panel unit root testing

Unemployment rate

Confirmation of the hypothesis for the majority of unemployment categories, except for the unemployment rate of persons aged 55 - 64 years old

No consideration of tests with breaks

Yaya, Ogbonna, & Mudida (2019)

1991-2017/42 African countries

Fourier unit root tests with structural break

Unemployment rate

Hysteresis found in only 7 countries out of a total of 42

Krištić et al. (2018)

1995q1-2016q2/euro area

Stochastic convergence test and detection of structural break (unit root tests with structural and nonnormal break)

Unemployment rate

Some degree of unemployment hysteresis in the euro zone; euro zone countries do not meet sufficient conditions for stochastic convergence

Meng et al. (2017)

1983q1-2013q3/14 OECD countries

Unit root tests with structural break and break-free Fourier test and nonlinear shapes

Unemployment rate

Temporary effects of unemployment shocks in 11 countries out of a total of 14, while permanent effects are mostly infrequent.

Performance of unit root tests with structural break

Arestis & Mariscal (1999)

1960-1997/26 OECD countries

Unit root tests with two structural breaks

Unemployment rate

Unit root tests that do not detect breaks are poorly specified and overly suggestive of persistent effects

Ball (2009)

1980-1990/20 developed countries

Hodrick-Prescott filter, MCO

Unemployment rate and inflation rate

Confirmation of hysteresis theories

Gomes & da Silva (2009)

1981 January- December 2002/Brazil region

Unit root tests with structural break

Unemployment rate

Strong persistence of unemployment in the Brazilian region, also presence of stochastic convergence

Bayer & Juben (2007)

1960-2002/West German region

Individual unit root tests with structural break and panel unit root tests

Unemployment rate

Presence of regional convergence of the unemployment rate

Lee et al. (2001)

1960-2004/17 OECD countries

LM unit root panel tests with heterogeneous structural breaks

Unemployment rate

Strong rejection of the hysteresis hypothesis

Papell et al. (2000)

1955-1997/16 OECD countries

Unit root tests with structural break

Unemployment rate

No persistent unemployment rate