Jobless Growth? Okun's Law in East Asia
Was economic growth in East Asia jobless? This paper addresses this question using data from eight East Asian countries during the period between 1997 and 2011 to estimate the Okun's Law Coefficient, which captures the relationship between gro...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/08/16581974/jobless-growth-okuns-law-east-asia http://hdl.handle.net/10986/11994 |
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okr-10986-119942021-04-23T14:02:58Z Jobless Growth? Okun's Law in East Asia Hanusch, Marek ACCOUNTING BUSINESS CYCLE BUSINESS CYCLES CREATIVE DESTRUCTION DEMOCRACY DISCUSSIONS ECONOMIC CRISES ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMICS EMPLOYERS EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT RATE FARM EMPLOYMENT FIRING HIRING HUMAN RESOURCES INCOME INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR JOB CREATION JOB DESTRUCTION JOBLESS GROWTH JOBS LABOR FORCE LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR MARKETS LAID-OFF WORKERS LOW UNEMPLOYMENT NATURAL RATE OF UNEMPLOYMENT PRODUCTIVITY RIGID LABOR MARKET TOTAL EMPLOYMENT UNDEREMPLOYMENT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE WAGES WORK IN PROGRESS WORKERS WORKING Was economic growth in East Asia jobless? This paper addresses this question using data from eight East Asian countries during the period between 1997 and 2011 to estimate the Okun's Law Coefficient, which captures the relationship between growth and employment. The analysis suggests that growth was not jobless. However, there is considerable variation across countries. Generally, the effect of growth on employment tends to magnify under more flexible hiring and firing rules. Yet even where labor markets are more tightly regulated, economic growth affects employment, not necessarily in the aggregate but in its composition. There is evidence that agricultural employment moves counter-cyclically, as opposed to non-agricultural employment. The effect is particularly pronounced in periods of economic crisis, suggesting that agriculture may serve as a shock-absorber for workers laid off in the industrial sector. Isolating non-agricultural employment reveals a stronger relationship between growth and job creation. 2012-12-21T19:08:57Z 2012-12-21T19:08:57Z 2012-08 http://documents.worldbank.org/curated/en/2012/08/16581974/jobless-growth-okuns-law-east-asia http://hdl.handle.net/10986/11994 English en_US Policy Research working paper;no. WPS 6156 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING BUSINESS CYCLE BUSINESS CYCLES CREATIVE DESTRUCTION DEMOCRACY DISCUSSIONS ECONOMIC CRISES ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMICS EMPLOYERS EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT RATE FARM EMPLOYMENT FIRING HIRING HUMAN RESOURCES INCOME INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR JOB CREATION JOB DESTRUCTION JOBLESS GROWTH JOBS LABOR FORCE LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR MARKETS LAID-OFF WORKERS LOW UNEMPLOYMENT NATURAL RATE OF UNEMPLOYMENT PRODUCTIVITY RIGID LABOR MARKET TOTAL EMPLOYMENT UNDEREMPLOYMENT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE WAGES WORK IN PROGRESS WORKERS WORKING |
| spellingShingle |
ACCOUNTING BUSINESS CYCLE BUSINESS CYCLES CREATIVE DESTRUCTION DEMOCRACY DISCUSSIONS ECONOMIC CRISES ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMICS EMPLOYERS EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT RATE FARM EMPLOYMENT FIRING HIRING HUMAN RESOURCES INCOME INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR JOB CREATION JOB DESTRUCTION JOBLESS GROWTH JOBS LABOR FORCE LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR MARKETS LAID-OFF WORKERS LOW UNEMPLOYMENT NATURAL RATE OF UNEMPLOYMENT PRODUCTIVITY RIGID LABOR MARKET TOTAL EMPLOYMENT UNDEREMPLOYMENT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE WAGES WORK IN PROGRESS WORKERS WORKING Hanusch, Marek Jobless Growth? Okun's Law in East Asia |
| geographic_facet |
East Asia and Pacific |
| relation |
Policy Research working paper;no. WPS 6156 |
| description |
Was economic growth in East Asia
jobless? This paper addresses this question using data from
eight East Asian countries during the period between 1997
and 2011 to estimate the Okun's Law Coefficient, which
captures the relationship between growth and employment. The
analysis suggests that growth was not jobless. However,
there is considerable variation across countries. Generally,
the effect of growth on employment tends to magnify under
more flexible hiring and firing rules. Yet even where labor
markets are more tightly regulated, economic growth affects
employment, not necessarily in the aggregate but in its
composition. There is evidence that agricultural employment
moves counter-cyclically, as opposed to non-agricultural
employment. The effect is particularly pronounced in periods
of economic crisis, suggesting that agriculture may serve as
a shock-absorber for workers laid off in the industrial
sector. Isolating non-agricultural employment reveals a
stronger relationship between growth and job creation. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Hanusch, Marek |
| author_facet |
Hanusch, Marek |
| author_sort |
Hanusch, Marek |
| title |
Jobless Growth? Okun's Law in East Asia |
| title_short |
Jobless Growth? Okun's Law in East Asia |
| title_full |
Jobless Growth? Okun's Law in East Asia |
| title_fullStr |
Jobless Growth? Okun's Law in East Asia |
| title_full_unstemmed |
Jobless Growth? Okun's Law in East Asia |
| title_sort |
jobless growth? okun's law in east asia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/08/16581974/jobless-growth-okuns-law-east-asia http://hdl.handle.net/10986/11994 |
| _version_ |
1764418664217444352 |