When and for Whom Does Growth Becomes Jobless?
The results of previous research suggest that the elasticity of employment with respect to output is not constant within each phase of the business cycle and might depend on the maturity of that phase. Nevertheless, empirical evidence is almost non-existent. Using the unemployment gap as the proxy f...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-01-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/12/1/19 |
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| author | Mindaugas Butkus Laura Dargenytė-Kacilevičienė Kristina Matuzevičiūtė Dovilė Ruplienė Janina Šeputienė |
| author_facet | Mindaugas Butkus Laura Dargenytė-Kacilevičienė Kristina Matuzevičiūtė Dovilė Ruplienė Janina Šeputienė |
| author_sort | Mindaugas Butkus |
| collection | DOAJ |
| description | The results of previous research suggest that the elasticity of employment with respect to output is not constant within each phase of the business cycle and might depend on the maturity of that phase. Nevertheless, empirical evidence is almost non-existent. Using the unemployment gap as the proxy for the maturity of the business cycle phase, this paper seeks to determine heterogeneous elasticity across different business cycle phases. Furthermore, we aim to evaluate specific elasticities for separate demographic groups, considering gender, age, and educational attainment level, to identify the most vulnerable to jobless growth. Our specification is based on the employment version of Okun’s law, and estimates are provided for the whole EU-27 panel covering the period from 2000 to 2022. Our results suggest that elasticity is higher when the unemployment gap is positive and increasing and lower when the gap decreases, regardless of the business cycle phase. Thus, it can be argued that the possibility of growth increasing employment is very limited when the economy operates at its potential level (full employment) for all demographic groups. |
| first_indexed | 2024-03-08T11:00:00Z |
| format | Article |
| id | doaj.art-4365c7f58f534a4b8b508d56a95fdcb7 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-08T11:00:00Z |
| publishDate | 2024-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-4365c7f58f534a4b8b508d56a95fdcb72024-01-26T16:07:37ZengMDPI AGEconomies2227-70992024-01-011211910.3390/economies12010019When and for Whom Does Growth Becomes Jobless?Mindaugas Butkus0Laura Dargenytė-Kacilevičienė1Kristina Matuzevičiūtė2Dovilė Ruplienė3Janina Šeputienė4Institute of Regional Development, Vilnius University Siauliai Academy, 76352 Siauliai, LithuaniaInstitute of Regional Development, Vilnius University Siauliai Academy, 76352 Siauliai, LithuaniaInstitute of Regional Development, Vilnius University Siauliai Academy, 76352 Siauliai, LithuaniaInstitute of Regional Development, Vilnius University Siauliai Academy, 76352 Siauliai, LithuaniaInstitute of Regional Development, Vilnius University Siauliai Academy, 76352 Siauliai, LithuaniaThe results of previous research suggest that the elasticity of employment with respect to output is not constant within each phase of the business cycle and might depend on the maturity of that phase. Nevertheless, empirical evidence is almost non-existent. Using the unemployment gap as the proxy for the maturity of the business cycle phase, this paper seeks to determine heterogeneous elasticity across different business cycle phases. Furthermore, we aim to evaluate specific elasticities for separate demographic groups, considering gender, age, and educational attainment level, to identify the most vulnerable to jobless growth. Our specification is based on the employment version of Okun’s law, and estimates are provided for the whole EU-27 panel covering the period from 2000 to 2022. Our results suggest that elasticity is higher when the unemployment gap is positive and increasing and lower when the gap decreases, regardless of the business cycle phase. Thus, it can be argued that the possibility of growth increasing employment is very limited when the economy operates at its potential level (full employment) for all demographic groups.https://www.mdpi.com/2227-7099/12/1/19jobless growthemployment to output elasticitybusiness cycleEuropean Union |
| spellingShingle | Mindaugas Butkus Laura Dargenytė-Kacilevičienė Kristina Matuzevičiūtė Dovilė Ruplienė Janina Šeputienė When and for Whom Does Growth Becomes Jobless? Economies jobless growth employment to output elasticity business cycle European Union |
| title | When and for Whom Does Growth Becomes Jobless? |
| title_full | When and for Whom Does Growth Becomes Jobless? |
| title_fullStr | When and for Whom Does Growth Becomes Jobless? |
| title_full_unstemmed | When and for Whom Does Growth Becomes Jobless? |
| title_short | When and for Whom Does Growth Becomes Jobless? |
| title_sort | when and for whom does growth becomes jobless |
| topic | jobless growth employment to output elasticity business cycle European Union |
| url | https://www.mdpi.com/2227-7099/12/1/19 |
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