Information processing from unemployment rates: Evidence from Spain, Switzerland and the European Union

Abstract

The chapter describes the behavior of the unemployment rates and actions taken to control it in the country with the most turbulent unemployment rates as it is Spain, in the country with the lowest and steadiest unemployment rates as it is Switzerland, and in the European Union which represents the countries with average unemployment rates. Actions on the labor market, that could have impacted unemployment, were described. The hypothesis of hysteresis was validated for the univariate series of gender inequality and the unemployment rates using the LM test, and on panel data using ILT test. Employing Pesaran CD test, the cross-dependence of the series of distinct characteristics, in both, unemployment and the unemployment gender inequality series was confirmed. The OLS, GLS-RE and GLS-FE models were used to explain the influence of the distinct characteristics of the unemployment and unemployment gender inequality series in this chapter.