IDEAS home Printed from https://ideas.repec.org/a/ine/journl/v1y2014i47p5-35.html
   My bibliography  Save this article

CAN OKUN’s LAW EXPLAIN DECENT WORK DEFICIT FOR YOUNG PEOPLE IN EUROPE? A FOCUS ON THE ROMANIAN ECONOMY

Author

Listed:
  • Emiliano COLANTONIO

    (University of Chieti-Pescara)

  • Gianluigi NICO

    (University of Chieti-Pescara)

Abstract

Due to the growing concern about the labour market situation of young people in Europe, this paper analysis the effective role played by real output growth in stimulating job creation. To reach this goal, one strand of this analysis empirically investigates the real output growth effects on the youth unemployment rate (15-24) by testing the difference version of the Okun’s law. The most interesting result relates to the case of the Romanian economy whose Okun’s law does not fit so well. We additionally test the Okun’s law on a set of Decent Work Indicators in order to verify whether a Decent Work deficit exists among young workers within the European labour market.

Suggested Citation

  • Emiliano COLANTONIO & Gianluigi NICO, 2014. "CAN OKUN’s LAW EXPLAIN DECENT WORK DEFICIT FOR YOUNG PEOPLE IN EUROPE? A FOCUS ON THE ROMANIAN ECONOMY," Romanian Journal of Economics, Institute of National Economy, vol. 38(1(47)), pages 5-35, June.
    • Handle: RePEc:ine:journl:v:1:y:2014:i:47:p:5-35
    as

    Download full text from publisher

    File URL: http://www.revecon.ro/articles/2014-1/2014-1-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cazes, Sandrine. & Verick, Sher., 2010. "What role for labour market policies and institutions in development? : enhancing security in developing countries and emerging economies," ILO Working Papers 994609403402676, International Labour Organization.
    2. repec:ilo:ilowps:460940 is not listed on IDEAS
    3. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    4. L. Alan Winters & Terrie L. Walmsley & Zhen Kun Wang & Roman Grynberg, 2003. "Liberalising Temporary Movement of Natural Persons: An Agenda for the Development Round," The World Economy, Wiley Blackwell, vol. 26(8), pages 1137-1161, August.
    5. V.N. Balasubramanyam, 2008. "Foreign Direct Investment," Chapters, in: Amitava Krishna Dutt & Jaime Ros (ed.), International Handbook of Development Economics, Volumes 1 & 2, volume 0, chapter 39, Edward Elgar Publishing.
    6. Dharam GHAI, 2003. "Decent work: Concept and indicators," International Labour Review, International Labour Organization, vol. 142(2), pages 113-145, June.
    7. Dipak Mazumdar, 2003. "Trends in employment and the employment elasticity in manufacturing, 1971--92: an international comparison," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(4), pages 563-582, July.
    8. Milner, Chris & Wright, Peter, 1998. "Modelling Labour Market Adjustment to Trade Liberalisation in an Industrialising Economy," Economic Journal, Royal Economic Society, vol. 108(447), pages 509-528, March.
    9. International Labour Office., 2013. "Global employment trends for youth 2013 : a generation at risk," Global Employment Trends Reports 994816973402676, International Labour Office, Economic and Labour Market Analysis Department.
    10. Davide Furceri & Ernesto Crivelli & Mr. Joël Toujas-Bernate, 2012. "Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis," IMF Working Papers 2012/218, International Monetary Fund.
    11. Ciuca, Vasilica & Lincaru, Cristina, 2010. "Strategic Development Prospects for the Labor Market in Romania, as Introduced by the Europe 2020 Strategy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(5), pages 100-119.
    12. Edward S. Knotek, 2007. "How useful is Okun's law?," Economic Review, Federal Reserve Bank of Kansas City, vol. 92(Q IV), pages 73-103.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pieters, Janneke, 2013. "Youth Employment in Developing Countries," IZA Research Reports 58, Institute of Labor Economics (IZA).
    2. Aleksynska, Mariya., 2014. "Deregulating labour markets : how robust is the analysis of recent IMF working papers?," ILO Working Papers 994849663402676, International Labour Organization.
    3. repec:ilo:ilowps:484966 is not listed on IDEAS
    4. Radha Jagannathan & Michael J. Camasso & Bagavan Das & Jale Tosun & Sadagopan Iyengar, 2017. "Family, society and the individual: determinants of entrepreneurial attitudes among youth in Chennai, South India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-22, December.
    5. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    6. Driouchi, Ahmed & Harkat, Tahar, 2016. "Macroeconomic and School Variables to Reveal Country Choices of General and Vocational Education: A Cross-Country Analysis with focus on Arab Economies," MPRA Paper 73455, University Library of Munich, Germany.
    7. A. Fiszbein & C. Cosentino & B. Cumsille, "undated". "The Skills Development Challenge in Latin America: Diagnosing the Problems and Identifying Public Policy Solutions," Mathematica Policy Research Reports 6e445252b5614db2be1d4bc3f, Mathematica Policy Research.
    8. Floreani, Vincent Arthur, 2014. "Fixing Europe's youth unemployment and skills mismatch, can public financial support to SMEs be effective? The case of the European Commission and European Investment Bank joint initiatives," MPRA Paper 55849, University Library of Munich, Germany.
    9. Vladislav Flek & Martin Hála & Martina Mysíková, 2018. "Nezaměstnanost a věková segmentace trhu práce [Unemployment and Age-based Labor Market Segmentation]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(6), pages 709-731.
    10. Klimczuk-Kochańska, Magdalena & Skarzyński, Michał & Hogeforster, Jürgen, 2015. "Przyszłość edukacji zawodowej. Kierunki reorientacji i nowe obszary aktywności zawodowej nauczycieli zawodu [The Future of Vocational Education: The Directions of Reorientation and New Areas of Pro," MPRA Paper 75390, University Library of Munich, Germany.
    11. Driouchi, Ahmed, 2015. "Threats to Skills of Unemployed Qualified Labor in Arab Economies," MPRA Paper 67361, University Library of Munich, Germany.
    12. Driouchi, Ahmed & Gamar, Alae, 2016. "The Gap between Educational & Social Intergenerational Mobility in Arab Countries," MPRA Paper 73998, University Library of Munich, Germany.
    13. Dong-Hoon Shin & David Bills, 2021. "Trends in Educational and Skill Mismatch in the United States," Social Sciences, MDPI, vol. 10(10), pages 1-36, October.
    14. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2015. "The own-wage elasticity of labor demand: A meta-regression analysis," European Economic Review, Elsevier, vol. 80(C), pages 94-119.
    15. Ahmed DRIOUCHI & Cristina BOBOC & Alae GAMAR, 2016. "Inequality In Educational Attainment of Females in Arab Countries: Comparisons to Eastern and Central European Economies," Romanian Journal of Economics, Institute of National Economy, vol. 43(2(52)), pages 34-60, december.
    16. Pierre Cahuc & Stéphane Carcillo & Ulf Rinne & Klaus Zimmermann, 2013. "Youth unemployment in old Europe: the polar cases of France and Germany," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    17. Adegboye , Abidemi C. & Arodoye , Nosakhare L., 2023. "Structural Changes and Employment Growth in Sub-Saharan Africa: Does Demographic Structure Matter?," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(2), pages 143-166, June.
    18. Driouchi, Ahmed & Harkat, Tahar, 2017. "Determinants of NEETs, using Granger Causality Tests: Applications to ECE and Arab Economies," MPRA Paper 78099, University Library of Munich, Germany.
    19. Bezu, Sosina & Holden, Stein, 2014. "Are Rural Youth in Ethiopia Abandoning Agriculture?," World Development, Elsevier, vol. 64(C), pages 259-272.
    20. Roxana Hatos & Tomina Saveanu, 2016. "Are Economic Studies Graduates Under-Employed? A Skills Mismatch Study," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 27-37, March.
    21. Carolina Jardim & Sofia Marques da Silva, 2018. "Young People Engaging in Volunteering: Questioning a Generational Trend in an Individualized Society," Societies, MDPI, vol. 8(1), pages 1-11, January.

    More about this item

    Keywords

    decent work; decent work indicators; econometric models; labour market; Okun’s law;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:1:y:2014:i:47:p:5-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentina Vasile (email available below). General contact details of provider: https://edirc.repec.org/data/inacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.