Validity and Asymmetry of Okun’s Law: Evidence from Asian Economies

This study investigates the validity and asymmetry of output-unemployment relationship for three groups: high income, upper middle income and lower middle income Asian Economies over the period of 1980-2018. This study investigates whether the behavior of labor markets is rigid or flexible in these economies over the sample period. By using the Hodrick and Prescott filter, the study finds a statistically significant relationship between cyclical output and cyclical unemployment; hence provides the evidence of the existence of Okun’s Law with more sensitive results for the lower middle economies as compared to other groups of countries. The study also discovers the evidence of asymmetric relationship of output-unemployment during the recessionary and expansionary period of economic growth. Although the value of coefficient varies due to asymmetry but the variation is found to be small across the three groups of the countries. The study concludes that sample economies have rigid labor markets indicating the persistence of structural unemployment.

NORTH–SOUTH ASYMMETRY IN TARIFF BARGAINING: A BLESSING FOR THE URBAN UNEMPLOYMENT?

In this study, North–South asymmetries are incorporated into a general equilibrium model to re-examine tariff bargaining. The asymmetric two-country model indicates that an import tariff charged by the North generates positive externalities that ameliorate structural unemployment in the South. The findings of this study yield two critical respects. First, the consideration of the urban unemployment in the South may reverse the consensus that a reciprocal tariff concession benefits both of the negotiators. Second and hence, this suggests that developing countries may bargain with opponents by manipulating second-best tariffs.

EVOLUTION OF LABOR RELATIONS IN THE REPUBLIC OF BELARUS IN THE CONTEXT OF DIGITALIZATION AND ROBOTIZATION OF THE ECONOMY

The article is devoted to the study of the evolution of labor relations in the Republic of Belarus. It was revealed that the dynamics of labor relations in the Republic of Belarus corresponds to global trends, ensuring the transition of our country to a new quality of economic growth. It is concluded that the positive effects for the national economy will be the higher, the more it is possible to introduce digital technologies and robotic systems in the real sector of the economy, as well as in the presence of an effective state system for reducing the level of structural unemployment generated by the further development of the digital economy.

Alberta's economic woes have political consequences

Significance With steep reductions in public spending affecting education and social programmes, the budget signals an era of austerity in what had been Canada’s wealthiest province. One consequence is likely to be greater tension between the provincial government and the federal government in Ottawa. Impacts Major international funds will continue to divest from the oil sands sector, further depressing output as subsidies are cut. Remaining oil sands production will be increasingly automated, meaning that structural unemployment will persist. Ottawa’s refusal to contest US cancellation of the Keystone XL pipeline has raised tensions with the UCP government in Edmonton. The national broad-based economic recovery expected this year will largely bypass Alberta.

Labour market under economy digitalization

The main problems of current labour market under economy digitalization caused by COVID-19 pandemic are reviewed in this article. Current economy system is based on factors of innovative development that effects on labour market and, therewith, reducing employment of population and increasing of structural unemployment. Therefore, the problems of labour market studies are becoming actual according to structural development of economy system itself in the age of economy globalization. Methodological framework has defined against the background of developed procedures and regulatory settings for regulation of labour market and labour power in Kazakhstan. The assessment, composition and statistical analysis methods were used for studies.

Germany’s Growth Prospects against the Backdrop of Demographic Change

This paper shows how the German Council of Economic Experts (GCEE) determines Germany’s potential output, and compares the results with those of the European Commission. The approach of the European Commission is a natural benchmark, as it provides the basis for the deficit and debt rules of the European Union. In comparison with the European Commission’s method, the GCEE’s method places greater emphasis on demographic factors in estimating labour input. Additionally, both approaches differ regarding how they estimate the structural unemployment rate and total factor productivity. Finally, this paper discusses the limitations of, and the different options for estimating potential output.

Is youth unemployment in EU countries structural?

This paper’s main aim is to observe and confirm youth unemployment as a structural phenomenon in certain EU countries, including Slovenia. An innovative contribution is that it complements the prevailing economistic discourse with a sociological one. In the introduction, a brief history and overview of youth unemployment is presented. Slovenia is only briefly mentioned as having one of the relatively longest-lasting youth unemployment rates in the EU. In sections 2 and 3, approaches from economics and sociology are relied on while discussing three ‘types’ of EU countries with regard to different structural unemployment rates. From a sociological view, the longterm nature of youth unemployment is described, together with its impact on the social structure and (possible) socially destructive and economically destabilizing consequences. In section 4, analysis of “every-day life” indicators, namely, young people’s perceptions of work and life, reveals some surprising facts that depart from previous findings. In short: young people are more satisfied with their work and lives than older generations.

The problem of structural unemployment at the present stage of labour market development in Ukraine

The article explores the theoretical and methodological basis of the problem of structural unemployment. The economic essence of the phenomenon has been identified, as well as the main reasons for its emergence in the context of globalization. The main types of structural unemployment are given: technological, territorial-industry. The relationship between the digitalization of business processes due to scientific and technological progress and the increase in the level of structural unemployment in the country has been revealed. The problem of structural unemployment in Ukraine at the present stage has been analyzed. The concept of public policy on structural unemployment has been proposed. Structural unemployment is a kind of unemployment, which arises as a result of structural changes in the economy of the country, exists under any economic system, its complete elimination is impossible. Depending on the reason for the emergence of structural unemployment is technological and geographically-sectorial unemployment. Technological unemployment is typical for highly developed countries with a high level of digitalization economy and is a consequence of automation of workplaces. Technological unemployment leads to transformations in the structure of demand for labor: withering some professions and the emergence of others. Such unemployment is a positive thing for the country's economy as a whole, so the main measures are to remove negative consequences of this unemployment for individual workers. In Ukraine, due to the relatively low rate of scientific and technological progress, the problem of technological unemployment, compared to developed countries, is less urgent. Geographically, the branch unemployment is caused by disproportions between supply and demand of manpower in certain areas or regions. In Ukraine and other countries with a transitive economy, this type of structural unemployment is more widespread. Balancing the demand and supply on the labor market at the mesoeconomic level is the main direction of the State policy on reducing the level of territorial and industry unemployment in Ukraine.

Decision between Public Investment and Public Consumption: A Policy Analysis

This study aims to draw a policy decision between public investment and public consumption by designing a Dynamic Stochastic General Equilibrium (DSGE) model for the economy of Pakistan which is experiencing persistent shocks that have stressed the growth pattern. The DSGE model has a microeconomic foundation and justifies locus critics by envisioning an artificial economy. The model is evaluated and set to best fit for data through an exercise of moment matching. Government consumption shocks and Government Investment shocks are used to trace out the behaviour of the economy. The analysis confirms that Pakistan economy could go for capital formation through public investment but it results in compromised public consumption and structural unemployment. It is further concluded that the export base and long-run public investment programs are needed to achieve sustainable development in the economy.