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Employment, unemployment and output growth in booms and recessions: time series evidence from Finland, 1970-1996

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Abstract:

The Finnish economy experienced dramatic changes in the early 1990s. The collapse of the economy in 1991 resulted in a 12% decline in GDP over the years 1991-1993, leading to a significant fall in the demand for labour and a rise in unemployment. The study contributes to the discussion on possible changes in the functioning of the Finnish economy by scrutinizing the stability of the employment/unemploymentoutput relation. The empirical analysis, based on aggregate variables from the period 1975-1996, suggests that the relationship between aggregate-level employment/ unemployment and output growth remained relatively stable throughout the investigation period.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/000368400322228

Publication date: June 10, 2000

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