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Unemployment Persistence in The Turkish Labor Market

Author

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  • Selcuk GEMICIOGLU

    (Van Yüzüncü Yıl Üniversitesi, İktisadi ve İdari Bilimler Fakültesi İktisat Bölümü, Van, Türkiye)

  • Hasan SAHIN

    (Ankara Üniversitesi, Siyasal Bilgiler Fakültesi İktisat Bölümü, Ankara, Türkiye)

Abstract

The aim of this study is to investigate the existence of unemployment persistence in the Turkish labor market. In this regard, the existence and degree of genuine state dependence was analyzed using the data obtained from the 2013-2016 Survey on Income and Living Conditions and Household Labor Force Survey. The dynamic random effects probit model estimation results showed that there is genuine state dependence in the Turkish labor market. In other words, after controlling for observed and unobserved heterogeneity and initial conditions, past unemployment experiences increased the probability of being unemployed in the future. In addition, the marginal effect of genuine state dependence was found to be higher for the unemployed individuals than for the individuals employed in the initial period. As one’s education level increases, the likelihood of being jobless declines, however, men are more likely than women to do so. Age, gender, education level, marital status, and the number of household employees all have an impact on the likelihood of being unemployed. Demand-side factors such as the unemployment rate and growth rate of employment do not affect the probability of remaining unemployed.

Suggested Citation

  • Selcuk GEMICIOGLU & Hasan SAHIN, 2023. "Unemployment Persistence in The Turkish Labor Market," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 181-211, January.
    • Handle: RePEc:ist:iujepr:v:10:y:2023:i:1:p:181-211
    DOI: 10.26650/JEPR1197535
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    References listed on IDEAS

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    More about this item

    Keywords

    Initial Conditions; State Dependence; Heterogeneity; Unemployment; Turkey JEL Classification : J64 ; J65 ; C23;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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