An analysis on the structural stability of Okun's law—a cross-country study

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Abstract:

Okun's law postulates an inverse relationship between movements of the unemployment rate and the real gross domestic product (GDP). This article investigates Okun's law for 15 OECD countries and checks for its the structural stability. By using data on employment and the labour force whether structural instability is caused either from the demand side or supply side is inferred.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840210124180

Publication date: September 20, 2002

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