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Intensive margin and extensive margin adjustments of labor market: Turkey versus United States

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  • Temel Taskin

    () (Central Bank of Turkey)

Abstract

In this paper, we document the intensive and extensive margin adjustments of labor market in Turkey and US. We find that both margins are important. More interestingly, the weight of intensive margin adjustment does not differ substantially between the two countries. Common wisdom and some theory would expect these countries to divert from each other significantly, because they represent two extreme points of labor market flexibility. A possible explanation for this result is the sizable informal sector and self employment in Turkey as it might reduce the large hiring and firing costs and encourage firms towards extensive margin adjustment.

Suggested Citation

  • Temel Taskin, 2013. "Intensive margin and extensive margin adjustments of labor market: Turkey versus United States," Economics Bulletin, AccessEcon, vol. 33(3), pages 2307-2319.
  • Handle: RePEc:ebl:ecbull:eb-13-00618
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    References listed on IDEAS

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    Cited by:

    1. Alexander Herzog-Stein & Patrick Nüß, 2016. "Extensive versus intensive margin over the business cycle: New evidence for Germany and the United States," IMK Working Paper 163-2016, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    2. Temel Taskin, 2014. "GDP Growth in Turkey : Inclusive or Not?," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 14(2), pages 31-64.
    3. Üngör, Murat, 2014. "Some thought experiments on the changes in labor supply in Turkey," Economic Modelling, Elsevier, vol. 39(C), pages 265-272.

    More about this item

    Keywords

    intensive margin; extensive margin; labor market flexibility; employment protection;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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