Abstract
In this chapter, the relationship between unemployment and GDP is examined for Greece after the crisis of 2008. The Gap version of the Okun’s Law is calculated with the use of quarterly data from the fourth quarter of 2008 to the fourth quarter of 2014. The Okun’s coefficient displays the ability of an economy to increase its GDP, by reducing its unemployment. Okun’s Law is also calculated for Germany and EU-17 and a comparison with Greece also follows. Furthermore, the effect of wage reduction in the unemployment of Greece during the last five years is examined with the use of the Mann–Whitney statistical test. Finally, forecasts for the trend of the unemployment rate until July 2015 are provided, which are based on a time series model. These forecasts can be used as an upper rate of unemployment. Unemployment rate above these forecasts points out the deterioration of the situation.
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Katris, C. (2016). Okun’s Law in Greece in the Post-Crisis Era: An Empirical Study. In: Petrakis, P. (eds) A New Growth Model for the Greek Economy. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-58944-6_14
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DOI: https://doi.org/10.1057/978-1-137-58944-6_14
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