The Determinants of Hysteresis in Unemployment: Evidence from Tunisia Estimate

Abstract

This research examines the determinants of the unemployment rate in Tunisia. Unemployment hysteresis is a macroeconomic problem. The empirical methodology relies on the "ARDL" autoregressive distributed lag approach and shows that there is a hysteresis phenomenon from 1987 to 2021. The study showed that there is a long-term relationship between the different variables. The results suggest that a reduction in Tunisia’s inflation, interest rates and consumer price index would be favorable to a reduction in the unemployment rate.