العلاقة بين نمو الناتج و البطالة : إعادة اختبار صحة قانون أوكن بالنسبة لحالة الجزائر

Abstract EN

In the macroeconomic framework there is a well-known relationship called Okun’s Law, which states that the negative relationship between movements of unemployment rate and real GDP can be determined.

This paper provides a new and useful framework for developing various models to investigate the outputunemployment relationship.

the objective of this paper is to examine whether an Okun type relationship between output and unemployment is present in the Algerian economy.

We are keen to find the level of GDP growth rate needed to achieve full employment.

Hence, from this analysis we will be able to determine the causal relationship between output and unemployment.

First, we will discuss unemployment trends in Algeria (1970/2010) , followed by a review of literature and the theoretical framework related to Okun’s law.

In the last section, identify and diagnose the most important types of unemployment suffered by the Algerian economy.

Finally we will discuss our results and its implications for the Algerian labour marke.

Approach: Using annual data covering the period 1970-2009, time series techniques are used to test the relation between unemployment and economic growth and to obtain estimates for Okun’s coefficient.

Namely, we used in the study cointegration test, vector error correction model and Granger causality test to determine the direction of the relationship between the two variables in the short and long term.