The Research On The Western Hysteresis Theory In Unemployment

The topic of the thesis is the theory of hysteresis in unemployment that appeared in the 1980s, it is related to the natural rate of unemployment and the actual unemployment rate. In order to respond to the proposition of the natural rate of unemployment, and explain the higher unemployment rate in the 1980s, some new Keynesian economists introduced the notion of Hysteresis that is used in physics into the unemployment theory. They believed that any exterior impacts that influence the actual unemployment rate will make the natural rate of unemployment change towards with the same direction of the actual unemployment, and the upper couldn't come back to the original level, so the system represents the character of multi-balance.In the beginning, the thesis reviews the evolvement of the western theory of unemployment, then in order to defines hysteresis and hyestersis in unemployment correctly, the thesis analyzes the background of the theory of hyestersis in unemployment, and explore the general meanings of hysteresis and the whole contents of hysteresis in unemployment, and especially distinguish "hysteresis" with "lag", and "hysteresis" with "sole balance", and analyze the connection of hysteresis in unemployment with the natural rate of unemployment, Phillips curve and inflation.On the foundation of the analyses of former economists, according to the judgment of the reason why hystersis in unemployment come into being, the author puts forward three new mechanisms that lead to hysteresis in unemployment, including the mechanism of insider-outsider, the mechanism of human capital scrapping and job searching, the mechanism of change of objective capital utilized rate and capital shortage. In order to testify it, the thesis introduces many theories that were researched in these years, including insider-outsider theory, job search and matching model, and unemployment duration, etc.Lastly, the thesis explores the relation of hysteresis in unemployment and the polices that were adopted to resolve the problem of unemployment, including macro economic polices, and unemployment insurance polices. On the basis of the former analyses, the author puts forward some advices that are related to transmission mechanisms of hysteresis in unemployment.