On the Dynamics of Unemployment in a Developing Economy: Colombia

Borradores de Economia
Número: 
208
Publicado: 
Clasificación JEL: 
C32, J31, J64
Palabras clave: 
Unemployment, wage disequilibrium, Cointegration, non-linearities

Lo más reciente

Jhorland Ayala-García, Yesica Tatiana Lara-Silva, Alejandro Alberto Vargas-Villamil, Lina Romero-Chaparro
Jesús Alonso Botero-García, Ligia Alba Melo-Becerra, Cristian Castrillón Gaviria, Daniela Gallo

This paper estimates an asymmetric error correction model to analyse the dynamic behaviour of the Colombian unemployment rate. We find evidence that wages above their long-run equilibrium level do increase unemployment, but wages below this level do not r