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The Response Of Employment To Gdp Growth In Turkey: An Econometric Estimation

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  • AKKEMIK, K. Ali

Abstract

This paper aims to investigate the mechanism of adjustment in the labor market with respect to changes in GDP. For this purpose, the response of employment, i.e. demand for labor, to the changes in GDP is modeled as an error correction model (ECM). The results indicate that the adjustments in the labor market lagged GDP growth. Confining the analysis to the manufacturing sector provides similar results. Further analyses of variance decomposition also point to the relation between GDP and employment. However, labor market responds to GDP changes with a delay of more than 4 periods.

Suggested Citation

  • AKKEMIK, K. Ali, 2007. "The Response Of Employment To Gdp Growth In Turkey: An Econometric Estimation," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    • Handle: RePEc:eaa:aeinde:v:7:y:2007:i:1_6
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    Cited by:

    1. Diana Bílková, 2019. "Analýza mezd a vybraných ukazatelů v zemích OECD [Analysis of Wages and Selected Indicators in OECD Countries]," Politická ekonomie, Prague University of Economics and Business, vol. 2019(2), pages 133-156.
    2. Jorge O. Moreno & Cecilia Y. Cuellar, 2021. "Informality, Gender Employment Gap, and COVID-19 in Mexico: Identifying Persistence and Dynamic Structural Effects," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(3), pages 1-25, Julio - S.
    3. Independent Evaluation Group, 2009. "Earnings Growth and Employment Creation," World Bank Publications - Books, The World Bank Group, number 24116, December.
    4. Selda Gorkey & Asli Tasbasi, 2023. "Employment Intensity of Economic Growth in Southern Europe: Evidence from Multidimensional Panel Data," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 25(1), pages 5-32, June.

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