Hysteresis in CEMAC Informal Employment

In this empirical study we investigate the hysteresis in informal employment rate for six central African countries for the period 1981–2012. We use a more powerful autoregressive fractionally integrated moving average model. This methodology helps to overcome the well-known problem of low power of traditional unit roots tests. The hypothesis is confirmed for all the countries, except for Gabon and the Republic of Congo. © 2015, The Author(s).