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Age Effects in the Okun's Law within the Eurozone

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  • Oliver Hutengs
  • Georg Stadtmann
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    Abstract

    We estimate Okun coefficients for five different age cohorts for several Eurozone countries. We find a stable pattern for all countries: The relationship between business-cycle fluctuations and the unemployment rate is the strongest for the youngest cohort and gets smaller for the elderly cohorts.

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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.407684.de/dp1243.pdf
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    Bibliographic Info

    Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1243.

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    Length: 8 p.
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:diw:diwwpp:dp1243

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    Keywords: Okun's law; labor market; youth unemployment;

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    1. Mark J. Holmes & Brian Silverstone, 2005. "Okun's Law, Asymmetries and Jobless Recoveries in the United States: A Markov-Switching Approach," Working Papers in Economics 05/06, University of Waikato, Department of Economics.
    2. Kaufman, Roger T., 1988. "An international comparison of Okun's laws," Journal of Comparative Economics, Elsevier, vol. 12(2), pages 182-203, June.
    3. Edward S. Knotek & II, 2007. "How useful is Okun's law?," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 73-103.
    4. Christian Pierdzioch & Jan-Christoph Rulke & Georg Stadtmann, 2011. "Do professional economists' forecasts reflect Okun's law? Some evidence for the G7 countries," Applied Economics, Taylor & Francis Journals, vol. 43(11), pages 1365-1373.
    5. Blinder, Alan S, 1997. "Is There a Core of Practical Macroeconomics That We Should All Believe?," American Economic Review, American Economic Association, vol. 87(2), pages 240-43, May.
    6. Brian Silverstone & Richard Harris, 2001. "Testing for asymmetry in Okun's law: A cross-country comparison," Economics Bulletin, AccessEcon, vol. 5(2), pages 1-13.
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