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Unemployment and hysteresis

Ben Christopher

10th February 2013

Looking ahead before we start investigating the different types of unemployment, in particular the link between cyclical and structural and the concept of hysteresis, I came across the two articles below. The first looks at how Spain's brain drain may actually serve to maintain the skills of those fleeing the country to Germany and anywhere else and so avoid hysteresis. The second looks at how cyclical unemployment "is converted" to the more destructive structural type (hysteresis) and goes on to explain the two main contributing factors."The longer someone is out of work, the less likely that person is to find a job. Skills deteriorate, younger workers tend to be hired for available vacancies, jobs move to new geographical locations and so on.Another factor that contributes to structural unemployment is automation — the replacement of human labor with machinery, computers and robots."The brain drain in Spain is mainly to Spain's gainOutsourcing, Insourcing and Automation

Long term unemployment rates for a variety of OECD countries

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