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Employment and Asset Prices

Listed author(s):
  • Gylfi Zoega

    (Department of Economics, Mathematics & Statistics, Birkbeck)

A medium-term relationship exists between share prices, normalised by labour productivity, and the rate of unemployment in the OECD countries. A similar relationship appears to exist between unemployment and house prices. 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.

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File URL: http://www.bbk.ac.uk/ems/research/wp/PDF/BWPEF0917.pdf
File Function: First version, 2009
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Paper provided by Birkbeck, Department of Economics, Mathematics & Statistics in its series Birkbeck Working Papers in Economics and Finance with number 0917.

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Date of creation: Nov 2009
Handle: RePEc:bbk:bbkefp:0917
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  32. Edmund S. Phelps & Hian Teck Hoon & Gylfi Zoega, 2004. "The Structuralist Perspective on Real Exchange Rate, Share Price Level and Employment Path: What Room is Left for Money?," Working Papers 05-2004, Singapore Management University, School of Economics.
  33. Hoon, Hian Teck & Phelps, Edmund S., 1997. "Growth, wealth and the natural rate: Is Europe's jobs crisis a growth crisis?," European Economic Review, Elsevier, vol. 41(3-5), pages 549-557, April.
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