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Employment and asset prices

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  • Gylfi Zoega

Abstract

A medium-term relationship exists between share prices, normalized by labour productivity, and the rate of unemployment in the Organization for Economic Co-operation and Development (OECD) countries. This helps explain decadal changes in mean unemployment, such as the shift to higher mean unemployment in the Continental European countries in the 1970s and 1980s that coincided with a fall in the level of share prices, as well as differences in mean unemployment between countries.

Suggested Citation

  • Gylfi Zoega, 2012. "Employment and asset prices," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3343-3355, September.
  • Handle: RePEc:taf:applec:44:y:2012:i:26:p:3343-3355
    DOI: 10.1080/00036846.2011.572860
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    2. Ekkehard Ernst, 2019. "Finance and Jobs: How Financial Markets and Prudential Regulation Shape Unemployment Dynamics," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 12(1), pages 1-30, January.
    3. Holmes, Mark J. & Maghrebi, Nabil, 2016. "Financial market impact on the real economy: An assessment of asymmetries and volatility linkages between the stock market and unemployment rate," The Journal of Economic Asymmetries, Elsevier, vol. 13(C), pages 1-7.

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