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Bai-Perron Estimates of OECD Natural Rates of Unemployment 1955-2011
Department of Economics, Lakehead University, Thunder Bay, Canada
Department of Economics, Lakehead University, Thunder Bay, Canada
- 1 Department of Economics, Lakehead University, Thunder Bay, Canada
- 2 Department of Economics, Lakehead University, Thunder Bay, Canada
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Abstract
Bai and Perron’s method for detecting multiple, unknown structural breaks was used to estimate natural rates of unemployment for 19 OECD countries from 1955-2011. Natural rates were lowest in the early period, then, rose in the mid-1970s and early-1980s in most countries. Several countries saw declines in the late-1990s or early-2000s.
KeywordsNatural RateNAIRUUnemploymentStructural Break
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