Productivity and Unemployment in the Short and Long Run

December 3, 2007

The relationship between productivity growth and unemployment has been debated since the birth of classical economics.

Building on a previous study of Okun’s Law—the relationship between output growth and unemployment, where productivity is assumed to be constant—this SCEPA Policy Note discusses productivity changes and their effect on unemployment over the short and long run.

Authors: Armon Rezai and Willi Semmler
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