Okun's Law, Development, and Demographics: Differences in the Cyclical Sensitivities of Unemployment Across Economy and Worker Groups

The negative and stable relationship between an economy’s aggregate demand conditions and overall unemployment is well-documented. We show that there is a large degree of heterogeneity in the cyclical sensitivities of unemployment across worker and economy groups. First, unemployment is more than tw...

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Bibliographic Details
Main Author: An, Zidong
Other Authors: Bluedorn, John, Ciminelli, Gabriele
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2021
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Economic & financial crises & disasters 
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653 |a Gender studies; women & girls 
653 |a Labour; income economics 
653 |a Employment; Economic theory 
653 |a Economics of Gender 
653 |a Non-labor Discrimination 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Economics: General 
653 |a Aggregate Labor Productivity 
653 |a Unemployment 
653 |a Informal sector; Economics 
653 |a Cyclical unemployment 
653 |a Demand and Supply of Labor: General 
653 |a Particular Labor Markets: General 
653 |a Aggregate Human Capital 
653 |a Labor 
653 |a Economics of specific sectors 
653 |a Labor Force and Employment, Size, and Structure 
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653 |a Labor force participation 
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520 |a The negative and stable relationship between an economy’s aggregate demand conditions and overall unemployment is well-documented. We show that there is a large degree of heterogeneity in the cyclical sensitivities of unemployment across worker and economy groups. First, unemployment is more than twice as sensitive to aggregate demand in advanced as in emerging market and developing economies. Second, youth’s unemployment is twice as sensitive as that of adults’. Third, women’s unemployment is significantly less sensitive to demand than men’s in advanced economies. These findings point to the highly unequal impacts of the business cycle across worker and economy groups