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Producto, desempleo y la Ley de Okun en la República Dominicana

Output, unemployment and Okun’s law in the Dominican Republic

José Sánchez-Fung

MPRA Paper from University Library of Munich, Germany

Abstract: The paper investigates Okun’s Law for the Dominican Republic during the second part of the twentieth century and the first decade of the twenty first. The econometric modelling estimates an Okun coefficient implying that, on average, for every 1 percent growth in real output the unemployment rate decreases 0.5 percentage points. But recursive modelling reveals that Okun’s coefficient has being falling during the last forty years from -0.88 in 1966 to -0.5 in 2013. The drop in the magnitude of Okun’s coefficient and the inertia in the number of workers registered out of the labour supply could help in illuminating episodes of ‘jobless growth’ observed for the Dominican Republic. The analysis also reveals that the implicit average rate of real output growth consistent with stable unemployment is 4.5% per annum.

Keywords: Okun’s Law; output; unemployment; Dominican Republic. (search for similar items in EconPapers)
JEL-codes: E24 (search for similar items in EconPapers)
Date: 2015-04
New Economics Papers: this item is included in nep-mac
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