Macro and Microecononic Persistence in Regional Unemployment The case of Argentina

PANIGO, DEMIAN TUPAC; FÉLIZ, MARIANO; PÉREZ, PABLO

Couverture Orange

CEPREMAP-CNRS

Lugar: París; Año: 2004 vol. 2004 p. 1 - 50

The aim of this paper is to develop a simple methodology for the study of regional unemployment persistence in Argentina. We use two complementary perspectives, combining a macroeconomic (aggregate) hysteresis approach with a microeconomic dynamic (individual-two-stage) evaluation. Macroeconomic results indicate that most shocks affecting the unemployment rate in different regions and population sub-groups are predominantly persistent (because of both participation and employment hysteresis). The microeconomic analysis allows us to detect a strong state-dependence effect (for most regions and mainly amongst youth and females), while duration-dependence is only significant for periods of high unemployment.