Okun's law and youth unemployment in Germany and Poland

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 373

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: Youth Unemployment ; Okun's Law ; Poland ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dunsch, Sophie
• Event: Veröffentlichung
• (who): European University Viadrina, Department of Business Administration and Economics
• (where): Frankfurt (Oder)
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/120898
• Last update: 10.03.2025, 11:42 AM CET