IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v12y2024i5p110-d1389952.html
   My bibliography  Save this article

Examining the Shifting Dynamics of the Beveridge Curve in the Turkish Labor Market during Crises

Author

Listed:
  • Jamilu Said Babangida

    (Department of Accounting, Finance and Economics, Griffith University, Nathan 4111, Australia
    Department of Economics, Ahmadu Bello University, Zaria 810107, Nigeria)

  • Asad Ul Islam Khan

    (Department of Economics, Ibn Haldun University, Başakşehir 34480, Turkey)

  • Ahmet Faruk Aysan

    (College of Islamic Studies, Hamad Bin Khalifa University, Ar-Rayyan 34110, Qatar)

Abstract

Following the global financial crisis, an increasing amount of attention has been directed towards examining the Beveridge curve (BC), which indicates the relationship between unemployment and vacancy rates. This research analyzes the unemployment–vacancy rate dynamics in the Turkiye labor market during both the global financial crisis and COVID-19 periods. The findings from this study demonstrate that the labor market exhibits deteriorating efficiency, as evidenced by movement of BC away from the origin. The unemployment and vacancy rates both increase over time, with a leftward (rightward) shift of BC during the global financial crisis (COVID-19) period. The study also reveals that both crises had no significant effect on unemployment–vacancy rate dynamics. In the Turkish labor market, there exists a situation where the vacancy rate is in shortfall of the unemployment level in Turkiye. This creates a positive relationship between these two factors. The labor market in Turkiye experiences inefficiencies as it struggles to generate a sufficient number of jobs to meet the demand from job seekers.

Suggested Citation

  • Jamilu Said Babangida & Asad Ul Islam Khan & Ahmet Faruk Aysan, 2024. "Examining the Shifting Dynamics of the Beveridge Curve in the Turkish Labor Market during Crises," Economies, MDPI, vol. 12(5), pages 1-16, May.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:5:p:110-:d:1389952
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/12/5/110/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/12/5/110/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bart Hobijn & Aysegul Sahin, 2013. "Beveridge Curve Shifts across Countries since the Great Recession," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(4), pages 566-600, December.
    2. Vansteenkiste, Isabel, 2017. "Did the crisis permanently scar the Portuguese labour market? Evidence from a Markov-switching Beveridge curve analysis," Working Paper Series 2043, European Central Bank.
    3. Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
    4. Khan, Asad Ul Islam & Shahbaz, Muhammad & Napari, Ayuba, 2023. "Subsample stability, change detection and dynamics of oil and metal markets: A recursive approach," Resources Policy, Elsevier, vol. 83(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrés Álvarez, 2016. "La Curva de Beveridge en Colombia (1976-2014): Cambios cíclicos y estructurales," Borradores de Economia 962, Banco de la Republica de Colombia.
    2. Lisauskaite, Elena, 2022. "Matching Efficiency and Heterogeneous Workers in the UK," IZA Discussion Papers 15610, Institute of Labor Economics (IZA).
    3. Stefan Schiman, 2021. "Labor Supply Shocks and the Beveridge Curve: Empirical Evidence from EU Enlargement," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 108-127, April.
    4. Francesco Furlanetto & Nicolas Groshenny, 2016. "Mismatch Shocks and Unemployment During the Great Recession," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(7), pages 1197-1214, November.
    5. Richard Raines & Jungho Baek, 2016. "The Recent Evolution of the U.S. Beveridge Curve: Evidence from the ARDL Approach," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 14-24, August.
    6. Hugo Erken & Eric van Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch labour market in the Great Recession," CPB Discussion Paper 303.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Stefan Schiman, 2018. "Labor Supply Shocks and the Beveridge Curve," WIFO Working Papers 568, WIFO.
    8. Hugo Erken & Eric van Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch labour market in the Great Recession," CPB Discussion Paper 303, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Hugo Erken & Eric Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch Labour Market in the Great Recession," De Economist, Springer, vol. 163(4), pages 435-459, December.
    10. Crawley, Andrew & Welch, Sarah & Yung, Julieta, 2021. "Improving estimates of job matching efficiency with different measures of unemployment," Journal of Macroeconomics, Elsevier, vol. 67(C).
    11. Michael Christl, 2020. "A Beveridge curve decomposition for Austria: did the liberalisation of the Austrian labour market shift the Beveridge curve?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-15, December.
    12. Ballot, Gerard, 2002. "Modeling the labor market as an evolving institution: model ARTEMIS," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 51-77, September.
    13. Sergio Destefanis & Matteo Fragetta & Giuseppe Mastromatteo & Nazzareno Ruggiero, 2020. "The Beveridge curve in the OECD before and after the great recession," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 411-436, September.
    14. Ricardo J. Caballero & Mohamad L. Hammour, 1996. "On the Timing and Efficiency of Creative Destruction," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(3), pages 805-852.
    15. Brown, Alessio J.G. & Merkl, Christian & Snower, Dennis J., 2011. "Comparing the effectiveness of employment subsidies," Labour Economics, Elsevier, vol. 18(2), pages 168-179, April.
    16. Christl, Michael, 2019. "A beveridge curve decomposition for Austria: What drives the unemployment rate?," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203551, Verein für Socialpolitik / German Economic Association.
    17. Esther Eiling & Raymond Kan & Ali Sharifkhani, 2018. "Sectoral Labor Reallocation and Return Predictability," Working Papers 2018-006, Human Capital and Economic Opportunity Working Group.
    18. Shigeru Fujita, 2011. "Dynamics of worker flows and vacancies: evidence from the sign restriction approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(1), pages 89-121, January/F.
    19. repec:zbw:rwirep:0005 is not listed on IDEAS
    20. Brown, Alessio & Merkl, Christian & Snower, Dennis, 2015. "An Incentive Theory Of Matching," Macroeconomic Dynamics, Cambridge University Press, vol. 19(3), pages 643-668, April.
    21. Matthew Rognlie & Andrei Shleifer & Alp Simsek, 2018. "Investment Hangover and the Great Recession," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(2), pages 113-153, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:12:y:2024:i:5:p:110-:d:1389952. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.