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Okun’s Law, Employment Paradox and Impact of Unemployment on the Economy of the USSR and Russia

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  • BLINOV, Sergey

Abstract

For effective economic growth, intentional “creation” of unemployment is required to be followed up by its «elimination». From Okun’s law one can infer an interesting corollary: growing unemployment without reducing GDP increases the economy’s potential. This corollary can be proved theoretically (unlike Okun’s law which is an empirical law). There were two causes of the USSR’s economic slowdown on the eve of its breakup. One of them was a shortage of labor which is identical to lack of unemployment. However strange it may seem, but the economic problems of modern Russia have the same root cause.

Suggested Citation

  • BLINOV, Sergey, 2014. "Okun’s Law, Employment Paradox and Impact of Unemployment on the Economy of the USSR and Russia," MPRA Paper 55220, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:55220
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    File URL: https://mpra.ub.uni-muenchen.de/55220/1/MPRA_paper_55220.pdf
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    References listed on IDEAS

    as
    1. BLINOV, Sergey, 2014. "Causes of the British Industrial Revolution," MPRA Paper 53642, University Library of Munich, Germany.
    2. BLINOV, Sergey, 2013. "Time Is Money. Theory of Value Depreciation," MPRA Paper 51902, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    employment; Okun’s law; economic growth; productivity;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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