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An Employment Equation for Belgium

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  • Vincent BODART

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Philippe LEDENT

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and ING)

  • Fatemeh SHADMAN-METHA

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

Economic theory considers economic growth and wage costs as crucial determinants in the process of job creation. In this paper, we try to quantify the relationship that exists between these variables in Belgium. Our objective being mainly the use of the empirical model for forecasting purposes, we use a V AR model to enable us to apply statistical tools to test some possible constraints within a loose model. We analyse the relationship at three levels: one national and two sectoral.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2009016.

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Length: 21
Date of creation: 01 Jun 2009
Date of revision:
Handle: RePEc:ctl:louvir:2009016

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Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)
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Web page: http://www.uclouvain.be/ires
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Keywords: Employment growth; long-run equilibrium; VAR model;

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  1. Prachowny, Martin F J, 1993. "Okun's Law: Theoretical Foundations and Revised Estimates," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 331-36, May.
  2. Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July.
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Cited by:
  1. Catherine SMITH, 2014. "Did the Intergenerational Solidarity Pact increase the employment rate of the elderly in Belgium? A macro-econometric evaluation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2014009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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