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

María Porras, Ángel Martín-Román (), Diego Dueñas Fernández and Raquel Llorente Heras ()
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Raquel Llorente Heras: Universidad Autónoma de Madrid
Authors registered in the RePEc Author Service: Raquel Llorente-Heras

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2024, issue 59, 105-125

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 (ERTEs) 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 (search for similar items in EconPapers)
Date: 2024
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Working Paper: Okun’s Law: The effects of the COVID-19 pandemic and the temporary layoffs procedures (ERTE) on Spanish regions (2022)
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:ris:invreg:0533

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