The Persistence Effect of Unemployment in Turkey: An Analysis of the 1980-2010 Period

Type Journal Article - Journal of Business Economics and Finance
Title The Persistence Effect of Unemployment in Turkey: An Analysis of the 1980-2010 Period
Author(s)
Volume 1
Issue 3
Publication (Day/Month/Year) 2012
Page numbers 22-32
URL http://dergipark.ulakbim.gov.tr/jbef/article/download/5000075832/5000070133
Abstract
The study aims to investigate the unemployment generating effects of economic
crises in detail for the 1980-2010 period in Turkey. While investigating the
unemployment generating effects of crisis, the important effects of persistence of
unemployment should not be ignored; where these effects become stronger in
emerging economies in addition to developed countries. In this context,
hysteresis effect ,which is mostly debated by the European side of New-
Keynesian economics, will be analyzed within the framework of the persistence
of unemployment. Accordingly, the study aims at investigating the
unemployment generating effects of crisis in Turkish economy within the
framework of hysteresis effect and persistence. The economic crises that
occurred in Turkey during 1980-2010 are evaluated in terms of their effects on
the persistence of unemployment. For this purpose, TURKSTAT's household
labor force surveys for the period 1980-2000 were referred. For the 2000-2010
period, published TURKSTAT Household labor force surveys were evaluated in
detail to investigate the persistence framework of the economic crisis. The data
examined in the period is generated annually, summing to a total of 4.7 million
survey data. In the empirical part of the study, the data acquired from surveys
was subjected to factor analysis to identify the most significant factors. In the
second stage, frequency tables and crosstabs were formed. The main findings of
the study indicate that the significant effects of economic crises over hysteresis
carry importance and the existence of such effects lead to increasing rates in
unemployment for the examined period in Turkey.

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