Economics at your fingertips  

Labor Productivity and Okun's Law: An Empirical Application to Italian Regional Panel Data

Giovanni Busetta and Dario Corso

Rivista italiana degli economisti, 2012, issue 2, 279-298

Abstract: Okun's law, named for its proposer, Arthur Okun, was first applied during the 1960s in the USA to describe the relationship between economic growth and unemployment fluctuations. Several attempts were later made to test the empirical applicability of the relationship to different countries and historical periods. Heterogeneous results were generally found in estimating Okun's coefficient, depending on the sample and context analysed. The main goal of this paper is to analyze the relevance of Okun's law to Italian regions. We perform a panel analysis to estimate the influence of asymmetry and local market differences on Okun's relationship. Moreover, observing particularly low values of participation rate in labor markets in southern areas, we propose other indicators to estimate Okun's coefficient which are more compatible with a delayed development area.

Keywords: Okun's Law; Asymmetry; Italian Regions; Employment; Unemployment (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Rivista italiana degli economisti is currently edited by Giuliano Conti

More articles in Rivista italiana degli economisti from Società editrice il Mulino
Series data maintained by ().

Page updated 2018-03-25
Handle: RePEc:mul:jqat1f:doi:10.1427/37497:y:2012:i:2:p:279-298