Okun’s Law: The effects of the COVID-19 pandemic and the temporary layoffs procedures (ERTE) on Spanish regions

M. Sylvina Porras-Arena, Ángel Martín-Román (almartin@uva.es), Diego Dueñas Fernández and Raquel Llorente Heras
Authors registered in the RePEc Author Service: Raquel Llorente-Heras

MPRA Paper from University Library of Munich, Germany

Abstract: Official statistics indicated a break in Okun’s law in all the Spanish regions due to the COVID-19 pandemic; however, herein, evidence of the validity of the law is shown. The temporary layoff procedures (ERTE) allowed many workers to maintain their jobs. From the productive point of view, the law remained in effect in the regions, showing a strong relationship between idle labour resources and economic activity, and from the social point of view, the apparent breakdown of the law can be interpreted as the implementation of a policy that mitigated the dramatic impact of the economic crisis.

Keywords: Okun’s law; ERTE; expanded unemployment rate (search for similar items in EconPapers)
JEL-codes: E23 E24 J64 R23 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-lab
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Related works:
Journal Article: Okun’s Law: The effects of the COVID-19 pandemic and the temporary layoffs procedures (ERTEs) on Spanish regions (2024)
Working Paper: Okun's Law: The effects of the COVID-19 pandemic and the temporary layoffs procedures (ERTE) on Spanish regions (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:115530

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