Okun's law and youth unemployment in Germany and Poland

Sophie Dunsch

No 373, Discussion Papers from European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics

Abstract: The unemployment rates, especially youth unemployment rates, increased in various countries of Europe over the last years. This paper examines youth unemployment developments in Germany and Poland with Okun's law to test the hypothesis that young employees are more exposed to the business cycle. I estimate age and country specific Okun coefficients for five different age cohorts. The results show that youth in Poland is more sensitive to the business cycle than adults, while in Germany the difference between the age cohorts is not that distinctive. A further examination of the different labor market institutions regarding youth employment results in policy recommendations beyond GDP growth, such as job-search assistance as short-term and structural reforms regarding education as long-term recommendation.

Keywords: Youth Unemployment; Okun's Law; Poland; Germany (search for similar items in EconPapers)
JEL-codes: E24 J64 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-eur, nep-mac and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:euvwdp:373

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