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Okun’s law revisited – Empirical Evidence for the period 1999-2023


Okun's law is a statistical relationship between the rate of output growth and the unemployment rate which asserts that changes in a country's Gross Domestic Product (GDP) and changes in the unemployment rate are inversely correlated. This essay corroborates the results of Mallis (2019) for Cyprus, while it investigates asymmetric correlations over gender and business cycles.

It is found that the unemployment rate for women is less responsive to shifts in output than it is for men, highlighting the disparities in the careers that men and women select. Moreover, unemployment is more responsive to changes in output during recessions, confirming the asymmetric correlation between unemployment and growth.


Keywords: Unemployment rate, Okun’s law, GDP growth, economic cycle

E01, E24, J01, J21


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