Sebastián Javier Uriol Chávez, William Cayatopa Gaona
DOI: 10.59427/rcli/2024/v24cs.1058-1064
This article analyzes research on Okun’s Law, which inversely relates economic growth and unemployment. Fifty-three articles with relevant search string were obtained from Scopus. 22 were directly related to the topic, of which 21 met the inclusion criteria. The results affirm that the inverse empirical relationship does hold, but not necessarily in the proportion of 1% more GDP implies 0.03% less unemployment, depending on each economy. The relationship was found to vary between expansions and recessions. Some developed countries show growth without reducing unemployment. It is noted that Latin American economies are capital-intensive, not labor-intensive, so Okun’s Law needs to be revised to capture these substantive elements.
Pág 1058-1064, 15 Feb
