Estimating Labour Market Performance in Twenty-Four OECD Countries, 1980-2009

The purpose of this study is to estimate the relationship between various macroeconomic variables such as output and labour for the 1980-2009 period. In order to indicate the main components of economic growth, I firstly use an alternative growth accounting method, where physical capital accumulation, technological changes and several (un)employment rates are also taken into account. Thus, analysing time series panel data of the USA, the EU-15 and some OECD countries with the rolling regression method, this paper concludes that the link between labour and output has obviously and temporarily changed after the mid-1990s. Hence, results suggested that an increase in output gaps caused a lesser changes in (un)employment rates, which could determine the increasing role of other economic factors i.e. technology, the labour market and political institutions etc