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In this empirical note we use a more powerful nonlinear (logistic) unit root test advanced by Leybourne et al. (1998) to investigate the hysteresis in unemployment for ten European countries for the period 1961-2003. The hypothesis is confirmed for all the European countries for which Leybourne et al.i¯s (1998) nonlinear (logistic) unit root test is performed, except for Belgium and the UK.

Revisiting Hysteresis in Unemployment for Ten European Countries : An Empirical Note on a More Powerful Nonlinear(LOGISTIC) Unit Root