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CAN OKUN’s LAW EXPLAIN DECENT WORK DEFICIT FOR YOUNG PEOPLE IN EUROPE? A FOCUS ON THE ROMANIAN ECONOMY

Author

Listed:
  • Emiliano COLANTONIO

    (University of Chieti-Pescara)

  • Gianluigi NICO

    (University of Chieti-Pescara)

Abstract

Due to the growing concern about the labour market situation of young people in Europe, this paper analysis the effective role played by real output growth in stimulating job creation. To reach this goal, one strand of this analysis empirically investigates the real output growth effects on the youth unemployment rate (15-24) by testing the difference version of the Okun’s law. The most interesting result relates to the case of the Romanian economy whose Okun’s law does not fit so well. We additionally test the Okun’s law on a set of Decent Work Indicators in order to verify whether a Decent Work deficit exists among young workers within the European labour market.

Suggested Citation

  • Emiliano COLANTONIO & Gianluigi NICO, 2014. "CAN OKUN’s LAW EXPLAIN DECENT WORK DEFICIT FOR YOUNG PEOPLE IN EUROPE? A FOCUS ON THE ROMANIAN ECONOMY," Romanian Journal of Economics, Institute of National Economy, vol. 38(1(47)), pages 5-35, June.
    • Handle: RePEc:ine:journl:v:1:y:2014:i:47:p:5-35
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    References listed on IDEAS

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    More about this item

    Keywords

    decent work; decent work indicators; econometric models; labour market; Okun’s law;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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