Real Cost of Employment and Turkish Labour Market: A Panel Cointegration Tests Approach

Melike Bildirici

International Journal of Applied Econometrics and Quantitative Studies, 2004, vol. 1, issue 2, 95-120

Abstract: The study aims to analyze the probability of employment in Turkey after 1990. In Turkey, real cost of labour sharply increases after 1990. It has happened to become the highest in OECD countries. This affects the employment of the firms and the level of employment in the economy. It is also an indisputable fact that level of labour cost affects the number of operating firms. While unemployment rapidly increases, inability of decreasing the real cost makes the policies aimed at unemployment ineffective.

Keywords: Employment; Panel Cointegration; Unit Roots (search for similar items in EconPapers)
JEL-codes: C22 C23 J (search for similar items in EconPapers)
Date: 2004
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