On Okun's Law in OECD Countries: An Analysis by Age Cohorts
12 Pages Posted: 18 Sep 2014 Last revised: 1 Dec 2015
Date Written: June 7, 2015
This study investigates Okun's law in OECD countries by examining estimates for male and female age cohorts for the period 1998-2012. We find that the estimated Okun coefficients are not always statistically significant for each subgroup of the population. Our results also highlight a general common pattern of higher Okun coefficients for the youngest cohorts. This confirms that the young population, and particularly the young male population, tends to be most exposed to the business cycle in both developed and emerging OECD countries.
Keywords: Age cohorts; Economic growth; Labor market; OECD countries; Okun's law
JEL Classification: C23; E24; F50
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