IDEAS home Printed from https://ideas.repec.org/p/hal/psewpa/hal-01297704.html
   My bibliography  Save this paper

Okun’s Laws Differentiated by Education

Author

Listed:
  • Philippe Askenazy

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique)

  • Christine Erhel

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)

Abstract

Our aim in this note is to set Okun's Law in a new perspective. We argue that highly educated labour should react differently to economic downturns and recoveries than lessereducated labour. A simple model shows that when highly educated workers are engaged in long-run projects, the adjustments of their (un)employment to GDP changes become ambiguous. If the access to capital is not too affected by the cycle, these adjustements can be the opposite of the employment changes of the lesser- educated workforce. Estimations for the United States, the European Union and across Europe support the coexistence of different Okun's laws according to educational attainment. This observation may help to explain recent puzzling macroeconomic facts.

Suggested Citation

  • Philippe Askenazy & Christine Erhel, 2015. "Okun’s Laws Differentiated by Education," PSE Working Papers hal-01297704, HAL.
  • Handle: RePEc:hal:psewpa:hal-01297704
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stephen Machin & Kjell G. Salvanes & Panu Pelkonen, 2012. "Education And Mobility," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 417-450, April.
    2. Philippe Aghion & Philippe Askenazy & Nicolas Berman & Gilbert Cette & Laurent Eymard, 2012. "Credit Constraints And The Cyclicality Of R&D Investment: Evidence From France," Journal of the European Economic Association, European Economic Association, vol. 10(5), pages 1001-1024, October.
    3. Askenazy, Philippe & Erhel, Christine, 2015. "The French Productivity Puzzle," IZA Discussion Papers 9188, Institute of Labor Economics (IZA).
    4. Philippe Askenazy & Lutz Bellmann & Alex Bryson & Eva Moreno Galbis, 2016. "Productivity Puzzles Across Europe," PSE-Ecole d'économie de Paris (Postprint) halshs-01379283, HAL.
    5. Philippe Askenazy & Christine Erhel, 2015. "Productivity Puzzles in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01297703, HAL.
    6. Robert J. Gordon, 2010. "Okun's Law and Productivity Innovations," American Economic Review, American Economic Association, vol. 100(2), pages 11-15, May.
    7. Michael T. Owyang & Tatevik Sekhposyan, 2012. "Okun’s law over the business cycle: was the great recession all that different?," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 399-418.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Askenazy, Philippe & Erhel, Christine, 2015. "The French Productivity Puzzle," IZA Discussion Papers 9188, Institute of Labor Economics (IZA).
    2. Philippe Askenazy & Christine Erhel, 2017. "La productivité du travail en déclin : quels liens avec les transformations du marché du travail ?," Post-Print hal-02138346, HAL.
    3. Mindaugas Butkus & Kristina Matuzeviciute & Dovile Rupliene & Janina Seputiene, 2020. "Does Unemployment Responsiveness to Output Change Depend on Age, Gender, Education, and the Phase of the Business Cycle?," Economies, MDPI, vol. 8(4), pages 1-29, November.
    4. Mindaugas BUTKUS & Laura DARGENYTE-KACILEVICIENE & Kristina MATUZEVICIUTE & Dovile RUPLIENE & Janina SEPUTIENE, 2024. "Are there more than three regimes in the output-unemployment relationship? A panel quantile regression estimates of Okun's gap model in EU countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 15, pages 201-218, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Askenazy, Philippe & Erhel, Christine, 2015. "The French Productivity Puzzle," IZA Discussion Papers 9188, Institute of Labor Economics (IZA).
    2. David M. Byrne & John G. Fernald & Marshall B. Reinsdorf, 2016. "Does the United States Have a Productivity Slowdown or a Measurement Problem?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 47(1 (Spring), pages 109-182.
    3. Bart van Ark, 2015. "From Mind the Gap to Closing the Gap. Avenues to Reverse Stagnation in Europe through Investment and Productivity Growth," European Economy - Discussion Papers 006, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Askenazy, Philippe & Palier, Bruno, 2018. "France: rising precariousness supported by the welfare state," CEPREMAP Working Papers (Docweb) 1801, CEPREMAP.
    5. Thomas Amossé & Philippe Askenazy & Martin Chevalier & Christine Erhel & Héloïse Petit & Antoine Rebérioux, 2016. "Industrial Relations and Firms’ Reactions to the Recession: A Comparative Micro-Econometric Analysis of France and Great Britain [Relations sociales et ajustements à la crise : une analyse micro-st," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02172455, HAL.
    6. Philippe Askenazy & Christine Erhel, 2017. "La productivité du travail en déclin : quels liens avec les transformations du marché du travail ?," Post-Print hal-02138346, HAL.
    7. Elva Bova & Christina Kolerus & Sampawende Tapsoba, 2015. "A fiscal job? An analysis of fiscal policy and the labor market," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-17, December.
    8. Guillaume Cléaud & Francisco de Castro Fernández & Jorge Durán Laguna & Lucia Granelli & Martin Hallet & Anne Jaubertie & Carlos Maravall Rodriguez & Diana Ognyanova & Balazs Palvolgyi & Tsvetan Tsali, 2019. "Cruising at Different Speeds: Similarities and Divergences between the German and the French Economies," European Economy - Discussion Papers 103, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    9. Rob Gandy & Chris Mulhearn, 2021. "Allowing for unemployment in productivity measurement," SN Business & Economics, Springer, vol. 1(1), pages 1-38, January.
    10. Ertürk, Korkut Alp & Mendieta-Muñoz, Ivan, 2018. "The changing dynamics of short-run output adjustment," MPRA Paper 87409, University Library of Munich, Germany.
    11. Peter Bauer & Igor Fedotenkov & Aurelien Genty & Issam Hallak & Peter Harasztosi & David Martinez Turegano & David Nguyen & Nadir Preziosi & Ana Rincon-Aznar & Miguel Sanchez Martinez, 2020. "Productivity in Europe: Trends and drivers in a service-based economy," JRC Research Reports JRC119785, Joint Research Centre.
    12. John Fernald, 2018. "Cyclical Downturn or Slowing Trend? A Review Article on Productivity Puzzles across Europe," International Productivity Monitor, Centre for the Study of Living Standards, vol. 34, pages 110-117, Spring.
    13. Bart van Ark & Kirsten Jäger, 2017. "Recent Trends in Europe's Output and Productivity Growth Performance at the Sector Level, 2002-2015," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 8-23, Fall.
    14. Alex Bryson & Michael White, 2019. "Migrants and Low-Paid Employment in British Workplaces," Work, Employment & Society, British Sociological Association, vol. 33(5), pages 759-776, October.
    15. Werner Eichhorst & Paul Marx, 2021. "How stable is labour market dualism? Reforms of employment protection in nine European countries," European Journal of Industrial Relations, , vol. 27(1), pages 93-110, March.
    16. Christine Erhel & Mathilde Guergoat-Larivière, 2016. "Innovations and job quality regimes: a joint typology for the EU," Working Papers hal-01907472, HAL.
    17. Donayre, Luiggi, 2022. "On the behavior of Okun's law across business cycles," Economic Modelling, Elsevier, vol. 112(C).
    18. Christine Erhel & Mathilde Guergoat-Larivière, 2016. "Innovations and job quality regimes: a joint typology for the EU," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01907472, HAL.
    19. Laurence M. Ball & Daniel Leigh & Prakash Loungani, 2013. "Okun's Law: Fit at Fifty?," NBER Working Papers 18668, National Bureau of Economic Research, Inc.
    20. Fedorets, Alexandra & Lottmann, Franziska & Stops, Michael, 2019. "Job matching in connected regional and occupational labour markets," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 53(8), pages 1085-1098.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:psewpa:hal-01297704. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.