The relationship between unemployment and output in Algeria (1989-2016)‎

الملخص EN

The objective of this paper is to investigate the relationship between economic growth and change of unemployment rates (Okun's Law) in Algeria for the 1989- 2016 period.

The difference and the dynamic version of Okun’s law and the Autoregressive Distributed Lag (ARDL) linear model are employed to estimate the Okun coefficient.

The results indicate a low negative Okun coefficient of about -0.78 % which explains the still high level of unemployment in Algeria, despite investment programmes implemented by the government to support economic growth.