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An Analysis of the Relationship between Higher Education Expenditures and Youth Unemployment in Turkey

Author

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  • Muammer Maral

    (Marmara Universitesi, Egitim Bilimleri Enstitusu, Egitim Bilimleri Bolumu, Istanbul, Turkiye)

  • Furkan Yildiz

    (Kirklareli Universitesi, Iktisadi ve Idari Bilimler Fakultesi, Iktisat Bolumu, Kirklareli, Turkiye)

  • Yusuf Alpaydin

    (Marmara Universitesi, Atatürk Egitim Fakultesi, Egitim Bilimleri Bolumu, Istanbul, Turkiye)

Abstract

The problem of unemployment—especially among youth—has been the subject of many scientific studies. Scientists have worked on the main causes of youth unemployment and possible solutions for a long time and are still working on it. However, youth unemployment is a complex, global problem that is affected by many factors. Various scientific disciplines have dealt with different perspectives on the main causes, consequences and possible solutions of youth unemployment. The problem is increasing worldwide, and various opinions and suggestions have been put forward. The main objective of this study is to analyze the determinants of youth unemployment in Turkey for the period 1988– 2019. The dependent variable of the study is youth unemployment, and the main variable that affects the dependent variable is higher education expenditures. Other control variables used in the study are real gross domestic product per capita, gross capital formation and labor productivity, respectively. The Autoregressive Distributed Lag Bounds Testing (ARDL Test) approach, which tests whether there is a short and long-run relationship between the series, was used in the study. The findings obtained from the analysis results indicate that youth unemployment is negatively associated with higher education expenditures and gross capital formation. It is positively associated with real gross domestic product per capita and labor productivity. When the long-term coefficients are compared, the independent variable that has the highest impact on youth unemployment is gross domestic product per capita, followed by gross capital formation, higher education expenditures and labor productivity, respectively.

Suggested Citation

  • Muammer Maral & Furkan Yildiz & Yusuf Alpaydin, 2021. "An Analysis of the Relationship between Higher Education Expenditures and Youth Unemployment in Turkey," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 173-197, July.
    • Handle: RePEc:ist:iujepr:v:8:y:2021:i:2:p:173-197
    DOI: 10.26650/JEPR.907984
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    More about this item

    Keywords

    Higher education expenditures; Youth unemployment; Gross capital formation; Turkey; Time series JEL Classification : E24 ; J20 ; J58;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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