Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Okun’s law within the OECD: A cross-country comparison
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
2017 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

In the 60’s, the first article identifying the relationship between output growth and unemployment were released, with the purpose of providing a tool for US authorities to estimate the effect of labour policy on output. This article, presented by Arthur Okun, came to lay the foundation for the commonly known empirical relationship, named Okun’s law. However, since the 60’s, the world has gone through political and economic shocks, such as the oil crisis, fall of the berlin wall, the crisis of the 90’s, the financial crisis and crisis of 2008. These events open up the question: has the relationship changed?

This study focuses on 21 OECD countries for the time period 1991-2016, with the purpose to identify their respective relationship between output growth and unemployment, namely their Okun coefficient. The test that will be performed calculates the marginal effects of respective country to observe differences. Further, this study aims to give the reader a greater understanding of the complexity underlying the simple model Okun presented in the 60’s. This is done by investigating whether there are any differences in the coefficient for countries within the EU, compared to those out of the EU. To explain the complexity further we check whether factors that affects labour market rigidity, such as union density, create differences in the Okun coefficient. The results from the study shows that the Okun coefficient differs between different countries. They also show that countries belonging to the European Union has a lower Okun’s coefficient on average. Finally, the results show that countries with a union density of over 75 % have a lower coefficient on average.

Place, publisher, year, edition, pages
2017.
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-140339OAI: oai:DiVA.org:umu-140339DiVA, id: diva2:1147347
Available from: 2017-10-05 Created: 2017-10-05 Last updated: 2017-10-05Bibliographically approved

Open Access in DiVA

fulltext(2357 kB)96 downloads
File information
File name FULLTEXT01.pdfFile size 2357 kBChecksum SHA-512
0a551f2f6b5fe0b39b5c8c0ee1de22b2f97aa013e6b1a539984290b7bc4b715a7a91e766eb40ff61e0e83e79e5101f3c5c37626f05a2429275c75355aedb6766
Type fulltextMimetype application/pdf

By organisation
Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 96 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 318 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf