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Output--employment relationship across employment status: evidence from Turkey

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  • Afşin Şahin
  • Aysit Tansel
  • M. Hakan Berument

Abstract

This paper investigates output--employment relationships across different employment statuses and formal versus informal employment divisions for Turkey. Even if we fail to find a long-run relationship between aggregate output and total employment, there are long-run relationships between the aggregate output with all of the formal employment statuses. A further investigation for short-run relationships reveals no statistically significant relationships between aggregate output and total employment and between aggregate output and casual employment but there is a significant short-run relationship between aggregate output and total regular employment. Thus, a sustainable economic growth policy should aim to create formal and regular employment.

Suggested Citation

  • Afşin Şahin & Aysit Tansel & M. Hakan Berument, 2014. "Output--employment relationship across employment status: evidence from Turkey," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 7(1), pages 99-121, March.
    • Handle: RePEc:taf:macfem:v:7:y:2014:i:1:p:99-121
    DOI: 10.1080/17520843.2012.761260
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    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    2. George A. Akerlof, 2009. "How Human Psychology Drives the Economy and Why It Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1175-1175.
    3. World Bank, 2008. "Jordan - Resolving Jordan's Labor Market Paradox of Concurrent Economic Growth and High Unemployment," World Bank Publications - Reports 18907, The World Bank Group.
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