Output-Employment Relationship across Sectors: A Long- versus Short-Run Perspective

Afsin Sahin, Aysıt Tansel () and Hakan Berument ()

No 7599, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the nature of the output-employment relationship by using the Turkish quarterly data for the period 1988-2008. Even if we fail to find a long-run relationship between aggregate output and total employment, there are long-run relationships for the aggregate output with non-agricultural employment and sectoral employment levels for seven of nine sectors that we consider. However, a further investigation for the output and employment relationship within a short-run perspective do not reveal statistically significant relationships for either total employment, or non-agriculture employment or the eight out of the nine sectors that we consider. Although there are various long-run relationships between output and employment, the short-run links between demand and employment are weak. The various implications of this for the economy and the labor market are discussed. As a result, maintaining high levels of output in the long-run creating the demand is essential for employment generation.

Keywords: output; seasonal cointegration; employment (search for similar items in EconPapers)
JEL-codes: C32 E24 E32 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013-08
New Economics Papers: this item is included in nep-ara and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Macroeconomics and Finance in Emerging Market Economies, 2013, 2, 1-23.

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Related works:
Journal Article: OUTPUT–EMPLOYMENT RELATIONSHIP ACROSS SECTORS: A LONG- VERSUS SHORT-RUN PERSPECTIVE (2015)
Working Paper: Output-Employment Relationship across Sectors: A Long- versus Short-Run Perspective (2013)
Working Paper: Output-Employment Relationship across Sectors: A Long- versus Short-Run Perspective (2013)
Working Paper: Output-Employment Relationship across Sectors:A Long- versus Short-Run Perspective (2013)
Working Paper: Output-Employment Relationship across Sectors: A Long- versus Short-Run Perspective (2012)
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