Analysis of the state transition probabilities in labour market has become one
of the indicators for evaluating the labour market efficiency. The state
transition plays an important role in terms of acquiring knowledge and
determination of basic factors in labour market. In this paper, the state
transition probabilities are computed by the means of Markov process from the
same periods of two year individual panel data, the Turkish quarterly data for
2007 and 2008, which is robust concerning the attrition problem that is
mentioned in the literature. As a following stage, multinominal logistic
regression model is employed to take the possible dynamics of transition
probabilities into account such as: age, gender, urban-rural distinction,
education, employment status and occupation. The results indicate that the
Turkish labour market have been affected negatively during the global
financial and economic crisis.