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Testing Okun’s law with Swiss industry data

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  • Jochen Hartwig

Abstract

Okun’s law postulates a stable relationship between quarterly output growth and changes in (un)employment. This proposition has so far been tested with macroeconomic data at the highest level of aggregation. The article goes beyond that in extending the analysis to industry data from Switzerland, applying a method suggested by the International Monetary Fund. Another focus is on whether expansions in production have become more ‘jobless’ over the most recent business cycle compared to earlier ones. This does not seem to be the case in Switzerland, except in the construction industry.

Suggested Citation

  • Jochen Hartwig, 2014. "Testing Okun’s law with Swiss industry data," Applied Economics, Taylor & Francis Journals, vol. 46(29), pages 3581-3590, October.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3581-3590
    DOI: 10.1080/00036846.2014.934435
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    Cited by:

    1. Goto, Eiji & Bürgi, Constantin, 2021. "Sectoral Okun's law and cross-country cyclical differences," Economic Modelling, Elsevier, vol. 94(C), pages 91-103.
    2. Mindaugas Butkus & Laura Dargenyte-Kacilevièiene & Kristina Matuzevièiute & Janina Šeputiene & Dovile Rupliene, 2023. "Age- and Gender-specific Output-employment Relationship across Economic Sectors," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(1), pages 3-22, January.

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