Some Thought Experiments on the Changes in Labor Supply in Turkey

Murat Üngör

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: Turkey has the lowest hours worked (the product of total employment and annual hours per worker, divided by the size of the working-age population) among the OECD countries. We study the changes in hours of work following Ohanian, Raffo, and Rogerson (Journal of Monetary Economics, 2008) and find that the intratemporal first-order condition from the neoclassical growth model accounts for the decline in total hours worked during 1998-2009 in Turkey. Hours worked increased in Turkey since 2009 and the model accounts for half of that increase between 2009 and 2011. Our findings suggest that time-varying taxes on consumption and labor play significant roles in explaining the hours worked in Turkey. The subsistence term is quantitatively important during 2003-2011. The presence of government consumption in the utility function does not seem very important.

Keywords: Labor supply; employment; hours of work; growth model; taxes; Turkey (search for similar items in EconPapers)
JEL-codes: E13 E20 E60 J22 O50 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-ara, nep-lab and nep-mac
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Related works:
Journal Article: Some thought experiments on the changes in labor supply in Turkey (2014)
Working Paper: Some Thought Experiments on the Changes in Labor Supply in Turkey (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1314

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