Long Memory in Turkish Unemployment Rates
Luis Gil-Alana,
Zeynel Ozdemir () and
Aysıt Tansel ()
Emerging Markets Finance and Trade, 2019, vol. 55, issue 1, 201-217
Abstract:
In this article we have examined the unemployment rate series in Turkey by using long memory models and in particular employing fractionally integrated techniques. Our results suggest that unemployment in Turkey is highly persistent, with orders of integration equal to or higher than 1 in the majority of the cases. This implies lack of mean reversion and persistence of the shocks. We found evidence in favor of mean reversion in the case of female unemployment and this happens for all the groups of non-agricultural, rural, urban, and youth unemployment series. The possibility of nonlinearities are observed only in the case of female unemployment and the degree of persistence is higher in the cases of female and youth unemployment series. Important policy implications emerge from our empirical results. Thus, for example, positive shocks reducing unemployment will have permanent effects being good for the economy, but negative shocks increasing unemployment will also have permanent effects and strong measures should then be adopted to reduce it. Labor and macroeconomic policies will most likely have long-lasting effects on the unemployment rates.
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2018.1425837 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Long Memory in Turkish Unemployment Rates (2017) 
Working Paper: Long Memory in Turkish Unemployment Rates (2017) 
Working Paper: Long Memory in Turkish Unemployment Rates (2017) 
Working Paper: Long memory in Turkish Unemployment Rates (2017) 
Working Paper: Long memory in Turkish Unemployment Rates (2017) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:55:y:2019:i:1:p:201-217
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20
DOI: 10.1080/1540496X.2018.1425837
Access Statistics for this article
More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().