Unemployment and Growth in the Tourism Sector in Mexico: Revisiting the Growth-Rate Version of Okun’s Law

Fernando Sánchez López
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Fernando Sánchez López: Facultad de Ciencias, Universidad Nacional Autónoma de México, 04510 Ciudad de México, Mexico

Economies, 2019, vol. 7, issue 3, 1-17

Abstract: In this paper, we analyze, by means of the difference version of Okun’s law, the relationship between tourism sector growth and unemployment in Mexico during the period 2000Q2–2018Q4. The results show that tourism growth is a palliative for unemployment, whereas unemployment reduces the growth of the tourism sector. The results also show that the relationship between the mentioned variables becomes stronger during an economic crisis and weaker during expansion periods.

Keywords: tourism volume index; unemployment; Okun’s law; structural vector autoregressive model (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:7:y:2019:i:3:p:83-:d:259328

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