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Testing Okun’s Law with Swiss Industry Data

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 paper 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 on. This does not seem to be the case in Switzerland, except in the construction industry.

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File URL: https://kofportal.kof.ethz.ch/publications/download/3292/wp_357.pdf
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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 14-357.

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Length: 21 pages
Date of creation: Jun 2014
Handle: RePEc:kof:wpskof:14-357
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  17. Stacey L. Schreft & Aarti Singh, 2003. "A closer look at jobless recoveries," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 45-73.
  18. Stacey L. Schreft & Aarti Singh & Ashley Hodgson, 2005. "Jobless recoveries and the wait-and-see hypothesis," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 81-99.
  19. Holmes, Mark J. & Silverstone, Brian, 2006. "Okun's law, asymmetries and jobless recoveries in the United States: A Markov-switching approach," Economics Letters, Elsevier, vol. 92(2), pages 293-299, August.
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