How Strong is the Correlation Between Unemployment and Growth Really? The Persistence of Okun's Law and How to Weaken it.
WWWforEurope Policy Paper No. 23
WWWforEurope: Welfare, Wealth and Work for Europe, Juni 2015, 59 Seiten
Mit finanzieller Unterstützung von: Österreichische Forschungsförderungsgesellschaft mbH – Österreichische Austauschdienst-GesmbH
We examine Okun's Law on the basis of new growth perspectives and in the context of the WWWForEurope project. By comparing
Okun's work from 1962 with the latest IMF and OECD surveys, a connection is set up and Okun's theoretical framework is updated
and its persistence is examined. In addition, the implicit logic of Okun's Law is stressed, and literature is reviewed from
this point of view as well. Furthermore, the main implicit component of Okun's Law – productivity – is taken into account
when discussing its breakdown in the WWWForEurope context. After applying the "difference method", we derive the conclusion
that the Okun coefficients and intercepts vary substantially between countries.
Forschungsbereich:Arbeitsmarktökonomie, Einkommen und soziale Sicherheit