Okun and Jamaica at 50: How Does Unemployment React to Growth?
Jamaica is projected to exit a prolonged recession that has left deep scars in the socioeconomic conditions of the country. Besides increasing macroeconomic vulnerabilities and halting economic growth, advances in poverty and unemployment were reversed. Unemployment bottomed in 2009 at 9.5 percent but increased over the following years until reaching more than 16 percent by April 2013, and poverty increased from 9.9 percent in 2007 to 17.6 percent in 2010. Following the literature on Okun's rule of thumb, we explore how the projected recovery will be reflected in the labor market. Results indicate that there is an association between GDP growth and unemployment - a 1 percent growth in GDP results in a 0.3 percent reduction in unemployment. These values indicate that under current growth projections, unemployment in Jamaica will remain above the psychologically important threshold of 10 percent for several years.
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Format: | Policy Briefs biblioteca |
Language: | English |
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Inter-American Development Bank
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Subjects: | Workforce and Employment, Productivity, E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity, O40 - Economic Growth and Aggregate Productivity: General, |
Online Access: | http://dx.doi.org/10.18235/0008435 https://publications.iadb.org/en/okun-and-jamaica-50-how-does-unemployment-react-growth |
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dig-bid-node-99902024-05-30T20:03:20ZOkun and Jamaica at 50: How Does Unemployment React to Growth? 2013-12-01T00:00:00+0000 http://dx.doi.org/10.18235/0008435 https://publications.iadb.org/en/okun-and-jamaica-50-how-does-unemployment-react-growth Inter-American Development Bank Workforce and Employment Productivity E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity O40 - Economic Growth and Aggregate Productivity: General Jamaica is projected to exit a prolonged recession that has left deep scars in the socioeconomic conditions of the country. Besides increasing macroeconomic vulnerabilities and halting economic growth, advances in poverty and unemployment were reversed. Unemployment bottomed in 2009 at 9.5 percent but increased over the following years until reaching more than 16 percent by April 2013, and poverty increased from 9.9 percent in 2007 to 17.6 percent in 2010. Following the literature on Okun's rule of thumb, we explore how the projected recovery will be reflected in the labor market. Results indicate that there is an association between GDP growth and unemployment - a 1 percent growth in GDP results in a 0.3 percent reduction in unemployment. These values indicate that under current growth projections, unemployment in Jamaica will remain above the psychologically important threshold of 10 percent for several years. Inter-American Development Bank Stevonne Nugent Juan Pedro Schmid Policy Briefs application/pdf IDB Publications Jamaica en |
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Workforce and Employment Productivity E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity O40 - Economic Growth and Aggregate Productivity: General Workforce and Employment Productivity E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity O40 - Economic Growth and Aggregate Productivity: General |
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Workforce and Employment Productivity E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity O40 - Economic Growth and Aggregate Productivity: General Workforce and Employment Productivity E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity O40 - Economic Growth and Aggregate Productivity: General Inter-American Development Bank Okun and Jamaica at 50: How Does Unemployment React to Growth? |
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Jamaica is projected to exit a prolonged recession that has left deep scars in the socioeconomic conditions of the country. Besides increasing macroeconomic vulnerabilities and halting economic growth, advances in poverty and unemployment were reversed. Unemployment bottomed in 2009 at 9.5 percent but increased over the following years until reaching more than 16 percent by April 2013, and poverty increased from 9.9 percent in 2007 to 17.6 percent in 2010. Following the literature on Okun's rule of thumb, we explore how the projected recovery will be reflected in the labor market. Results indicate that there is an association between GDP growth and unemployment - a 1 percent growth in GDP results in a 0.3 percent reduction in unemployment. These values indicate that under current growth projections, unemployment in Jamaica will remain above the psychologically important threshold of 10 percent for several years. |
author2 |
Stevonne Nugent |
author_facet |
Stevonne Nugent Inter-American Development Bank |
format |
Policy Briefs |
topic_facet |
Workforce and Employment Productivity E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity O40 - Economic Growth and Aggregate Productivity: General |
author |
Inter-American Development Bank |
author_sort |
Inter-American Development Bank |
title |
Okun and Jamaica at 50: How Does Unemployment React to Growth? |
title_short |
Okun and Jamaica at 50: How Does Unemployment React to Growth? |
title_full |
Okun and Jamaica at 50: How Does Unemployment React to Growth? |
title_fullStr |
Okun and Jamaica at 50: How Does Unemployment React to Growth? |
title_full_unstemmed |
Okun and Jamaica at 50: How Does Unemployment React to Growth? |
title_sort |
okun and jamaica at 50: how does unemployment react to growth? |
publisher |
Inter-American Development Bank |
url |
http://dx.doi.org/10.18235/0008435 https://publications.iadb.org/en/okun-and-jamaica-50-how-does-unemployment-react-growth |
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AT interamericandevelopmentbank okunandjamaicaat50howdoesunemploymentreacttogrowth |
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1809106643836731392 |