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Employment-output link in Finland : evidence from regional data

Author

Listed:
  • Aki Kangasharju

    (Pellervo Economic Research Institute, Finland)

  • Jaakko Pehkonen

    (School of Business and Economics, University of Jyväskylä, Finland)

Abstract

This study examines the relation between employment and output using panel data on 452 Finnish municipalities regrouped into 85 areas, representing regions at the so called NUTS4 level in the EU. The results imply that: (i) the contemporaneous relation between changes in employment and output growth disappeared in the early 1990s; (ii) there is evidence of a recovery of this relation in the mid 1990s; (iii) there are differences in the employment-output relation between different regions; and (iv) the existing differences can be partly explained by differences in industrial specialisation.

Suggested Citation

  • Aki Kangasharju & Jaakko Pehkonen, 2001. "Employment-output link in Finland : evidence from regional data," Finnish Economic Papers, Finnish Economic Association, vol. 14(1), pages 41-50, Spring.
    • Handle: RePEc:fep:journl:v:14:y:2001:i:1:p:41-50
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    References listed on IDEAS

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    Cited by:

    1. Mutascu, Mihai & Sokic, Alexandre, 2021. "Okun's law in the US: New insights in time and frequency," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 207-222.
    2. Tahir Mahmood & Eatzaz Ahmad, 2014. "Output growth and investment dynamics in Finland: a panel data analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 777-801, November.
    3. repec:ilo:ilowps:486701 is not listed on IDEAS
    4. Durech, Richard & Minea, Alexandru & Mustea, Lavinia & Slusna, Lubica, 2014. "Regional evidence on Okun's Law in Czech Republic and Slovakia," Economic Modelling, Elsevier, vol. 42(C), pages 57-65.
    5. Sanna-Mari Ahtonen, 2003. "Spatial autocorrelation in employment-output relation," ERSA conference papers ersa03p209, European Regional Science Association.
    6. PERUGINI, Cristiano, 2009. "Employment Intensity Of Growth In Italy. A Note Using Regional Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 9(1).
    7. Oberst, Christian & Oelgemöller, Jens, 2013. "Economic Growth and Regional Labor Market Development in German Regions: Okun’s Law in a Spatial Context," FCN Working Papers 5/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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