What is it about?
This paper investigates the nature of the output–employment relationship by using the Turkish quarterly data for the period 1988–2008. We do not find a long-run relationship between aggregate output and total employment. However, 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. Further, we do not find a statistically significant relationship in the short-run, also.
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Why is it important?
This study is important because maintaining high levels of output in the long-run creating demand is essential for employment generation. Further, these findings are consistent with the limited employment generating capacity of the Turkish industry and better employment generating capacity of the services sector in general.
Perspectives
In order to reduce unemployment and increase employment, cross-sector labour mobility could be improved by encouraging reallocation of workers from declining employment sectors to expanding employment sectors especially to help sectors exhibiting ‘jobless-growth’ properties. Such policies may complement broad monetary and fiscal policies to increase the employment level.
Professor Aysit - Tansel
Middle East Technical University
Read the Original
This page is a summary of: Output–employment relationship across employment status: evidence from Turkey, Macroeconomics and Finance in Emerging Market Economies, February 2013, Taylor & Francis,
DOI: 10.1080/17520843.2012.761260.
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