scholarly journals The output employment elasticity and the increased use of temporary contracts: Evidence from Poland

2020 ◽  
Vol 70 (1) ◽  
pp. 83-104
Author(s):  
Kristof Bartosik ◽  
Jan Mycielski
Keyword(s):  
Temporary Employment ◽  
Output Growth ◽  
Okun’S Law ◽  
Okun's Law ◽  
Temporary Contracts ◽  
Employment Elasticity ◽  
High Level

AbstractThe paper investigates how the increased use of temporary contracts in Poland affected employment elasticity with respect to output. The analysis is based on Okun's law, and covers the period of 1996–2016, with particular focus on the years of 2001–2016 when temporary jobs became prevalent. We look at the relationships between output growth and the growths of aggregate, permanent and temporary employment separately. Our study finds that the responsiveness of aggregate employment to output is positive and changes through time. Interestingly, after 2007, when the use of temporary contracts stabilised at a high level, the employment intensity of growth started decreasing. We relate this to the opposite trends in output responsiveness of temporary and permanent jobs. Elasticity of temporary job was growing, while elasticity of permanent job was decreasing. Our study also shows that initially employers adapt to output changes replacing permanent job with temporary job, next temporary contracts become the main adjustment device.

scholarly journals Beyond Okun's Law: Output Growth and Labor Market Flows

2019 ◽  
Author(s):  
Guay C. Lim ◽  
Robert John Dixon ◽  
Jan C. van Ours
Keyword(s):  
Labor Market ◽  
Output Growth ◽  
Okun’S Law ◽  
Okun's Law ◽  
Labor Market Flows

Revisiting Okun’s Law in European Union countries

2016 ◽  
Vol 43 (2) ◽  
pp. 275-287 ◽  
Author(s):  
Athina Economou ◽  
Iacovos N. Psarianos
Keyword(s):  
European Union ◽  
Labor Market ◽  
Output Growth ◽  
Okun’S Law ◽  
Content Type ◽  
Unemployment Rates ◽  
Okun's Law ◽  
Market Protection ◽  
European Union Countries ◽  
Decomposition Models

Purpose – The purpose of this paper is to examine Okun’s Law in European countries by distinguishing between the transitory and the permanent effects of output changes upon unemployment and by examining the effect of labor market protection policies upon Okun’s coefficients. Design/methodology/approach – Quarterly data for 13 European Union countries, from the second quarter of 1993 until the first quarter of 2014, are used. Panel data techniques and Mundlak decomposition models are estimated. Findings – Okun’s Law is robust to alternative specifications. The effect of output changes to unemployment rates is weaker for countries with increased labor market protection expenditures and it is more persistent for countries with low labor market protection. Originality/value – The paper provides evidence that the permanent effect of output changes upon unemployment rates is quantitatively larger than the transitory impact. In addition, it provides evidence that increased labor market protection mitigates the adverse effects of a decrease in output growth rate upon unemployment.

scholarly journals UNEMPLOYMENT AND ECONOMIC GROWTH IN NIGERIA: DOES OKUN’S LAW MATTERS?

10.23856/3203 ◽  
2019 ◽  
Vol 32 (1) ◽  
pp. 26-37
Author(s):  
Oluwaseyi Adedayo Adelowokan ◽  
Adeteji Olusegun Оkutimiren
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Unemployment Rate ◽  
Government Expenditure ◽  
Output Growth ◽  
Sustainable Growth ◽  
Okun’S Law ◽  
Okun's Law ◽  
The Government ◽  
The Impact

The situation in Nigeria is rapid population growth with high level of unemployment rate. The theoretical proposition of the Okun’s law suggests an indirect relationship existing between unemployment and output growth. This study tests the validity of Okun’s law by examining the impact of youth employment generation on sustainable growth in the Nigerian economy. We modeled real gross domestic product against unemployment rate, population growth, labour and government expenditure between 1986 and 2017. The empirical findings show that there is short- and long- run relationship existing between unemployment rate, population growth and output growth in Nigeria. Hence, study recommends that the activities by the government in promoting economic growth in the country should be geared towards promoting employment for the people in other sector.

scholarly journals Relationship between Economic Growth and Unemployment Rates in the Algerian Economy: Application of Okun’s Law during 1991–2019

2021 ◽  
Vol 12 (1) ◽  
pp. 71-85
Author(s):  
Bilal Louail ◽  
Djamel Benarous
Keyword(s):  
Labour Market ◽  
Developing Economies ◽  
Output Growth ◽  
Annual Data ◽  
Okun’S Law ◽  
Unemployment Rates ◽  
Okun's Law ◽  
Market Protection ◽  
The Impact ◽  
Gdp Gap

This paper aims to examine the Algerian economy by applying Okun’s law to study the impact of real GDP on unemployment rates and examine the impact of labour market protection policies on Okun’s coefficients. The annual data on the Algerian economy for the period 1991–2019 were used. The autoregressive distributed lag (ARDL) bounds testing technique model was used in conjunction with the gap version for Okun’s coefficients. The empirical results show that Okun’s law operates in Algeria’s economy. Coefficients estimated using the gap version led to the conclusion that there was a negative and significant impact of the GDP gap on unemployment rates. Though there was a decline in unemployment as GDP increased, the rise in employment was very weak for each 1% increase in the GDP. These findings should be of significant interest to regulators and policymakers in the Algerian economy, practitioners and academic researchers, international and national investors, managers and any other groups interested in the labour market in the Algerian economy and the labour markets of other developing economies. The paper provides the real GDP’s effect on unemployment rates in Algeria by releasing the gap version for Okun’s coefficient. Also, it provides evidence that increased labour market protection mitigates the adverse effects of a decrease in output growth rate on employment.

The Relationship of GDP, Unemployment Rateand Employment: In-depth Analysis of Okun’s Law for Russia

2015 ◽  
pp. 5-27 ◽  
Author(s):  
E. Vakulenko ◽  
E. Gurvich
Keyword(s):  
Developed Countries ◽  
Output Growth ◽  
Okun’S Law ◽  
Short Term ◽  
Okun's Law ◽  
Depth Analysis ◽  
Cross Country ◽  
Relationship Of ◽  
The Relationship

The authors estimate the short-term and long-term relationship GDP- unemployment (employment). These are the first reliable and robust confirmations of Okun’s law validity for Russia. It has been shown that the reaction of unemployment to output decline is much stronger than the response to output growth of the same size. Cross-country comparisons give evidence that Okun’s coefficient for Russia is slightly inferior to the same indicator for most developed countries, but is similar to coefficients found for other emerging markets.

scholarly journals Beyond Okun's Law: Output Growth and Labor Market Flows

2018 ◽  
Author(s):  
Guay C. Lim ◽  
Robert John Dixon ◽  
Jan van Ours
Keyword(s):  
Labor Market ◽  
Output Growth ◽  
Okun’S Law ◽  
Okun's Law ◽  
Labor Market Flows
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