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

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  • 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
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    References listed on IDEAS

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    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. 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).
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