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Okun's Law in Austria

Author

Listed:
  • Michael Christl

    (Agenda Austria)

  • Monika Köppl-Turyna

    (Agenda Austria)

  • Dénes Kucsera

    (Agenda Austria)

Abstract

We estimate the classic and the dynamic variant of Okun's law for the Austrian labor market. We find that, for recent periods, the growth rate necessary to stabilize the unemployment rate equals 2.8 percent. Moreover, we find that the rate has been growing in recent quarters due to the increasing labor force size and the effects of the crisis. The latest prediction of the employment threshold lies above 3 percent, much above forecasted GDP growth up to 2017.

Suggested Citation

  • Michael Christl & Monika Köppl-Turyna & Dénes Kucsera, 2017. "Okun's Law in Austria," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 97-110, June.
  • Handle: RePEc:cmn:journl:y:2017:i:2:p:97-110
    as

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    References listed on IDEAS

    as
    1. Sandrine Cazes & Sher Verick & Fares Al Hussami, 2013. "Why did unemployment respond so differently to the global financial crisis across countries? Insights from Okun’s Law," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-18, December.
    2. Brent Meyer & Murat Tasci, 2012. "An unstable Okun’s Law, not the best rule of thumb," Economic Commentary, Federal Reserve Bank of Cleveland, issue June.
    3. repec:fip:fedcec:y:2012:i:jun7:n:2012-8 is not listed on IDEAS
    4. Michael Christl & Monika Köppl–Turyna & Dénes Kucsera, 2016. "Structural unemployment after the crisis in Austria," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-36, December.
    5. Leopold Sogner & Alfred Stiassny, 2002. "An analysis on the structural stability of Okun's law--a cross-country study," Applied Economics, Taylor & Francis Journals, vol. 34(14), pages 1775-1787.
    6. Laurence M. Ball & Daniel Leigh & Prakash Loungani, 2013. "Okun's Law: Fit at Fifty?," NBER Working Papers 18668, National Bureau of Economic Research, Inc.
    7. 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.
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    Cited by:

    1. Shabir Mohsin Hashmi & Ali Gul Khushik & Muhammad Akram Gilal & Zhao Yongliang, 2021. "The Impact of GDP and Its Expenditure Components on Unemployment Within BRICS Countries: Evidence of Okun’s Law From Aggregate and Disaggregated Approaches," SAGE Open, , vol. 11(2), pages 21582440211, June.

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