Modelling nonlinear behavior of labor force participation rate by STAR: An application for Turkey

Sibel Cengiz () and Afsin Sahin
Additional contact information
Sibel Cengiz: Department of Economics, Mugla Sitki Kocman University, Mugla, Turkey

International Journal of Business and Economic Sciences Applied Research (IJBESAR), 2014, vol. 7, issue 1, 113-127

Abstract: The aim of this paper is to contribute to the understanding of the behavior of participation rates in terms of gender differences. We employed smooth autoregressive transition models for the quarterly Turkish labor force participation rates (LFPR) data between 2000: Q1 – 2011: Q4 to present an asymmetric participation behavior. The smoothness parameter indicates a gradual transition from low to high regimes. It is higher for female workers compared to the male workers. Participation rates diminish during a recession but they increase smoothly during the periods of expansion. The estimation results of Enders et al. (1998) also verified the asymmetry and nonlinearity in participation rates. During periods of economic expansion, they are higher than the threshold but the low regime indicator function takes the value zero. The results of the paper have economic implications for policy makers. Due to the discouraged worker and added worker effects, LFPR should be observed with the unemployment rates while evaluating the tightness of the labor market.

Keywords: Labor Force Participation Rate; Asymmetry; Nonlinear Behavior; STAR Model (search for similar items in EconPapers)
JEL-codes: E24 J21 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ijbesar.af.duth.gr/docs/volume7_issue1/lab ... rticipation_rate.pdf (application/pdf)
https://ijbesar.af.duth.gr/volume7_issue1.php (text/html)

Related works:
Working Paper: Modelling Nonlinear Behavior of Labor Force Participation Rate by STAR: An Application for Turkey (2013)
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:tei:journl:v:7:y:2014:i:1:p:113-127

Access Statistics for this article

International Journal of Business and Economic Sciences Applied Research (IJBESAR) is currently edited by Christos Grose and Persefoni Polychronidou

More articles in International Journal of Business and Economic Sciences Applied Research (IJBESAR) from Democritus University of Thrace (DUTH), Kavala Campus, Greece Contact information at EDIRC.
Bibliographic data for series maintained by Kostas Stergidis ().