diff --git a/matlab/global_initialization.m b/matlab/global_initialization.m
index 9136f6165..f711511a8 100644
--- a/matlab/global_initialization.m
+++ b/matlab/global_initialization.m
@@ -843,7 +843,7 @@ set_dynare_seed('default');
 
 % Create directories
 [junk,junk]=mkdir(M_.fname);
-[junk,junk]=mkdir([M_.fname '/Output']);
+[junk,junk]=mkdir([M_.fname filesep 'Output']);
 
 % Load user configuration file.
 if isfield(options_, 'global_init_file')