Unemployment entry, exit and Okun’s law: An analysis with Australian data
Robert Dixon ()
Additional contact information
Robert Dixon: University of Melbourne
Australian Journal of Labour Economics (AJLE), 2024, vol. 27, issue 2, 161-181
Abstract:
This paper sets out a new approach to understanding Okun’s law and the evolution of the unemployment rate in Australia. Okun’s law can be expressed in terms of a relationship between first differences in the unemployment rate and the growth rate of real GDP while changes in the unemployment rate in turn can be expressed in terms of flows into and out of unemployment. Having established that Australian data is consistent with the ‘change’ version of Okun’s Law we then examine the unemployment entry and exit rates to determine the extent to which the variations in one or both of these rates can be explained by variations in GDP growth. It would appear that the asymmetry in the relationship reflects a greater impact of changes in GDP growth on the entry rate and not the exit rate.
Keywords: Labour market flows; Okun’s law; Equilibrium unemployment rate; Australia (search for similar items in EconPapers)
JEL-codes: E24 E32 J64 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:
Downloads: (external link)
https://ajle.org/index.php/ajle_home/article/view/279 (text/html)
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: https://EconPapers.repec.org/RePEc:ozl:journl:v:27:y:2024:i:2:p:161-181
Access Statistics for this article
More articles in Australian Journal of Labour Economics (AJLE) from Bankwest Curtin Economics Centre (BCEC), Curtin Business School Contact information at EDIRC.
Bibliographic data for series maintained by Sandie Rawnsley ().