Okun’s lawthe effects of the Covid-19 pandemic and the temporary layoffs procedures (ERTEs) on Spanish regions

  1. Porras Arena, M. Sylvina 1
  2. Martín Román, Ángel 2
  3. Dueñas Fernández, Diego 3
  4. Llorente Heras, Raquel 4
  1. 1 Facultad de Ciencias Económicas y Empresariales, Universidad de Valladolid, España
  2. 2 Facultad de CC. Sociales, Jurídicas y de la Comunicación, Universidad de Valladolid, Segovia, España
  3. 3 Facultad de Ciencias Económicas, Empresariales y Turismo, Universidad de Alcalá, España
  4. 4 Facultad de Ciencias Económicas y Empresariales, Universidad Autónoma de Madrid, España
Investigaciones Regionales = Journal of Regional Research

ISSN: 1695-7253 2340-2717

Year of publication: 2024

Issue: 59

Pages: 105-125

Type: Article

More publications in: Investigaciones Regionales = Journal of Regional Research


Official statistics indicated a break in Okun’s law in all the Spanish regions due to the COVID-19 pandemic; however, herein, evidence of the validity of the law is shown. The temporary layoff procedures (ERTEs) allowed many workers to maintain their jobs. From the productive point of view, the law remained in effect in the regions, showing a strong relationship between idle labour resources and economic activity, and from the social point of view, the apparent breakdown of the law can be interpreted as the implementation of a policy that mitigated the dramatic impact of the economic crisis.

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