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Seoul Journal of Economics - Vol. 38 , No. 4
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[ Article ]
Seoul Journal of Economics - Vol. 38, No. 4, pp. 349-379
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 30 Nov 2025
Received 14 May 2025 Revised 19 Sep 2025 Accepted 13 Oct 2025
DOI: https://doi.org/10.22904/sje.2025.38.4.001

A Comparative Study on Unemployment Hysteresis: Evidence from Various Asian Regions Using Panel Data
Deepti Singh ; Abhishek Kumar ; Garima Singh
Deepti Singh (corresponding author), Assistant Professor, Department of Applied Sciences, National Institute of Technology, Delhi, India (deeptisingh2904@gmail.com)
Abhishek Kumar, Independent Researcher and Data Scientist (myselfabk5@gmail.com)
Garima Singh, Assistant Professor, Department of Economics, Manipal University (MAHE), Jaipur (garima.singh@jaipur.manipal.edu)

JEL Classification: E24, J64, C23, E32, J16, O53

Abstract

The paper explores unemployment hysteresis in Asian countries. This paper collects annual unemployment data from various Asian countries over the period of 2003–2023, disaggregated by gender. Our empirical methodology includes trend analysis using graphical data representation and panel unit root tests with three groups: first-generation, second-generation, and variance ratio tests. Advanced unit root tests have ensured more reliable results. This paper shows that unemployment hysteresis is present in most Western and Central Asian countries, while it is largely absent in Eastern and Southern Asia. Policy implications are significant because they help identify the nature of unemployment in these countries and support the development of appropriate labor market policies.

Keywords: unemployment hysteresis, panel unit root tests, Asian countries, VR ratio tests, natural rate hypothesis
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