MEASURING UNEMPLOYMENT PERSISTENCE BY AGE AND GENDER

This paper examines the dynamics of the unemployment rates across gender and age in Spain during the period 19761q1-2013q4. A battery of unit root tests with and without structural breaks is applied to test the hypothesis of hysteresis and fractional integration techniques are used to study the persistence of the unemployment rates. Empirical evidence suggests that there are structural breaks and high level of persistence in all the series, especially in those of young and women. Consequently, differences in the dynamics of the unemployment rates between men and women as well as between young and adults should be taken into account in the design of the public policy in order to correct the effects of cyclical shocks.