Unemployment dynamics in the United Kingdom: a quarter-millennium perspective
ECONOMICS LETTERS, vol.254, 2025 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 254
- Publication Date: 2025
- Doi Number: 10.1016/j.econlet.2025.112468
- Journal Name: ECONOMICS LETTERS
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, Periodicals Index Online, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, Public Affairs Index, zbMATH
- Keywords: Unemployment, Hysteresis, Non-normal distributions, Smooth breaks, Non-linearity, Quantile unit root
- Erciyes University Affiliated: Yes
Abstract
This letter examines the persistence of unemployment in the United Kingdom (UK) using over a quarter of a millennium of data, spanning from 1760 to 2023. The results from the quantile unit root approach-accounting for non-normal distributions, structural changes, and non-linearity-reveal asymmetric unemployment dynamics. Shocks to unemployment appear transitory in low-unemployment regimes but are persistent in highunemployment regimes. The findings highlight the importance of accounting for asymmetries in labor market adjustments.