The Bathtub Model of Unemployment: The Importance of Labor Market Flow Dynamics
An alternative to Okun’s law to understand unemployment dynamics is to examine the evolution of the unemployment inflow and outflow rates.
Okun’s Law and Long Expansions
Economic forecasters frequently use a simple rule of thumb called Okun’s law to link their real GDP growth forecasts to their unemployment rate forecasts.
Prospects for the U.S. Labor Market
The unemployment rate in the United States fell from 9.1 percent in the summer of 2011 to 8.3 percent in February.