Original scientific paper
https://doi.org/10.1080/1331677X.2021.1875253
Employment hysteresis in the United States during the COVID-19 pandemic
Xinyi Zhang
Giray Gozgor
Zhou Lu
Jinhua Zhang
Abstract
In this paper, we test the validity of the employment hysteresis
hypothesis. For this purpose, we use daily employment data at
the national and state levels in the United States from January 8,
2020, to May 30, 2020. We apply the modified version of the
Kapetanios-Shin unit root test, along with finite-sample critical values. We find that the employment hysteresis hypothesis is valid
in the United States during the COVID-19 era. The validity of the
findings does not change when data at the national and state
levels are used. The evidence is also valid when the employment
levels for all firms and small firms are considered. The results are
also robust to employment levels for workers at different income
levels and employment in five different sectors.
Keywords
Employment hysteresis hypothesis; COVID-19 pandemic; United States; nonlinear unit root tests; half-life
Hrčak ID:
301659
URI
Publication date:
31.12.2021.
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