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Panel Causality and Cointegration between Productivity and Unemployment
Applied Economics Quarterly, Vol. 61 (2015), Iss. 2 : pp. 141–153
2 Citations (CrossRef)
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Center for Globalization and Governance, Nova School of Business and Economics, 1099-032 Lisboa, Portugal.
Cited By
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How does monetary policy respond to the dynamics of the shadow banking sector?
Agnello, Luca | Castro, Vitor | Jawadi, Fredj | Sousa, Ricardo M.International Journal of Finance & Economics, Vol. 25 (2020), Iss. 2 P.228
https://doi.org/10.1002/ijfe.1748 [Citations: 5] -
The Productivity–Real Wage Nexus in Emerging European Economies: Evidence from Poland
Gajewski, Paweł | Kutan, Ali M.Eastern European Economics, Vol. 59 (2021), Iss. 3 P.250
https://doi.org/10.1080/00128775.2021.1880271 [Citations: 4]
Abstract
This paper empirically investigates the link between productivity and unemployment in a panel of 19 OECD countries between 1970 and 2010. By means of recently developed panel data econometric methods, we find that unemployment and productivity are non-stationary in levels and they are cointegrated for the panel as a whole. In terms of causality, the stronger directional relationship runs from unemployment to productivity. Furthermore, the long-run effect seems to be generally positive, therefore favouring of those theories which suggest that prolonged recessions foster long-run productivity improvements.
JEL Classification: C32, E32, J21, O40, O57