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An Empirical Examination of Unemployment Invariance Hypothesis, Discouraged and Added Worker Effects in Turkey

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  • Ibrahim Arisoy

    (Turkish National Police Academy, Institute of Security Sciences, Ankara, Turkey)

Abstract

This paper examines the long run relationship between unemployment and labor force participation rates as a criterion for assessing the validity of discouraged effect or unemployment invariance hypothesis in Turkish labor market for the period 2000Q1-2011Q3. To this end, ARDL bounds testing and Gregory and Hansen cointegration methods are utilized to test for the long run relationship between unemployment and labor force participation rates. The empirical results indicate that there is no evidence of a long run relationship between unemployment and labor force participation rates by using both aggregate and disaggregated data and thus long run unemployment rate is independent of labor force participation rate in Turkey.

Suggested Citation

  • Ibrahim Arisoy, 2018. "An Empirical Examination of Unemployment Invariance Hypothesis, Discouraged and Added Worker Effects in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 11-14.
    • Handle: RePEc:eco:journ1:2018-06-2
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Unemployment invariance hypothesis; discouraged worker effect; labor force participation rates; unemployment; cointegration.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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