Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323137 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Ekonomika [ISSN:] 2424-6166 [Volume:] 103 [Issue:] 1 [Year:] 2024 [Pages:] 6-24
Publisher: 
Vilnius University Press, Vilnius
Abstract: 
In this paper, the correlation between unemployment rate and real output for OECD countries was analyzed through the application of Okun's Law and unemployment hysteresis 2007-2022. For this purpose, panel error correction, panel cointegration, ARDL Bounds Test and Granger causality techniques were preferred. In addition, unemployment hysteresis was examined with different panel unit root technique in OECD countries. The findings show that there is a long-term link among the variables, while supporting unemployment hysteresis in most OECD countries. Long-term findings show that Okun's law is applicable. Causality analysis indicates that there is a one-way and negative relationship towards the unemployment rate. The estimation for the long-run coefficient shows that the increase in growth leads to a decrease in the unemployment rate. Short-term findings also support long-term outcomes.
Subjects: 
Okun
output
unemployment
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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