Is the response of the Slovak labor market asymmetric to output changes?

The accession to the European Union, several external shocks, and the questionable state interventions in the country's business environment significantly impacted economic development of Slovakia. These phenomena were reflected in both the economic and social situation, namely the level of Gro...

Full description

Saved in:
Bibliographic Details
Published in:Journal of economic asymmetries 2025-06, Vol.31, p.e00403, Article e00403
Main Authors: Pitoňáková, Renáta, Kucharčík, Rudolf, Kabát, Ladislav
Format: Article
Language:English
Subjects:
ARDL
GDP
NARDL
Okun's law
Unemployment
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The accession to the European Union, several external shocks, and the questionable state interventions in the country's business environment significantly impacted economic development of Slovakia. These phenomena were reflected in both the economic and social situation, namely the level of Gross domestic product (GDP) and rate of unemployment. The goal of our paper is to analyze the possible asymmetries in the unemployment-output relationship according to the Okun's law. We used quarterly data to apply static and dynamic models in their symmetric and asymmetric forms (2009 Q1 – 2023 Q3). The results suggest that the labor market reacts more noticeably to GDP contraction than to GDP expansion. The outcomes are of interest to governing bodies managing labor market policy, primarily in the economic downturn, and for banks in controlling interest rates and inflation.
ISSN:1703-4949
DOI:10.1016/j.jeca.2025.e00403