Okun’s Law in Russia

A new paper concludes that “Okun’s law is applicable in Russia.” “The economic connection between economic growth rates and changes in unemployment proposed by Okun (1962) over half a century ago remains one of the main tools for analyzing labor markets.”

“Gabrisch and Buscher (2006) proposed that the formation of the labor market mechanism in the formerly planned economies could be considered as completed once Okun’s law became persistently applicable there.”

“The general conclusion is that Okun’s law is applicable in Russia both in the short and long run. A comparison (Akhundova et al., 2005) has shown that transition processes in the Russian labor market were completed during the first half of the 2000s (i.e., the shaping of the labor market mechanisms took slightly more than 10 years).”

The article is available from the Russian Journal of Economics.

Posted by at 10:42 AM

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