İŞSİZLİK HİSTERİSİ Mİ, DOĞAL İŞSİZLİK ORANI MI? E7 VE G7 ÜLKELERİNDEN YENİ KANITLAR
IS UNEMPLOYMENT HYSTERESIS OR NATURAL RATE OF UNEMPLOYMENT? NEW EVIDENCE FROM E7 AND G7 COUNTRIES

Summary/Abstract: Unemployment is among the most fundamental macroeconomic problems that need to be solved in the national economies. Shocks in the country's economies and fluctuations in the labour market cause adverse effects on unemployment. There are two basic approaches in the economics literature on whether increasing unemployment will return to its natural level. The first is the natural rate of unemployment approach, which suggests that increasing unemployment will return to its natural level in the long run. The other approach is called unemployment hysteresis and argues that there is no return from increasing unemployment. In this study, the unemployment hysteresis approach or the natural unemployment rate for the E7 countries (China, Brazil, India, Indonesia, Mexico, Russia and Turkey) and the G7 countries (Canada, France, Germany, Italy, Japan, England and USA) in the period of 1991-2020. validity is under investigation. It is being investigated comparatively. As an empirical method, PANICCA panel unit root test developed by Reese and Westerlund (2016) and Panel Fourier LM (Nazlıoğlu and Karul, 2017) unit root test, which takes into account structural breaks, are preferred. Both unit root test findings show the valid

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