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Unemployment and Transitions in the Turkish Labor Market: Evidence from Individual Level Data

Author

Listed:
  • Tasci, H. Mehmet

    (Balikesir University)

  • Tansel, Aysit

    (Middle East Technical University)

Abstract

This paper provides a systematic analysis of the determinants of transitions in the Turkish labor market by using the Household Labor Force Survey (HLFS) panel data of 2000 and 2001. We provide two types of evidence. First, we compute annual transition probabilities between the labor market states of employment, unemployment and out-of-the labor force under Markovian assumptions by gender and rural-urban residence and marital status. Transition probabilities are used to analyze the differences in unemployment rates of these groups. Second, we present estimates of gender-specific multinomial logit models to analyze the determinants of men's and women's transition probabilities across labor market states. We find that urban women have higher unemployment rates than urban men because they have lower probability of exiting unemployment for a job and higher probability of exiting employment for unemployment. Non-married men and women's unemployment rates are higher than married men and women's. This may be attributed to the higher probability of non-married men and women's to lose a job. Increases in education level are found to decrease the probability of losing a job. University graduates of two-year and over are more likely to find employment compared to non-graduates. Younger individuals are more likely to lose a job but older individuals are less likely to find a job from unemployment. In provinces with high unemployment the probability of obtaining a job is lower from unemployment. The findings indicate negative duration dependence for women, but not for men. Men improve their chances of obtaining a job if they use newspapers or worker agents.

Suggested Citation

  • Tasci, H. Mehmet & Tansel, Aysit, 2005. "Unemployment and Transitions in the Turkish Labor Market: Evidence from Individual Level Data," IZA Discussion Papers 1663, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1663
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    References listed on IDEAS

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    1. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366.
    2. Mark C. Foley, 1997. "Labor Market Dynamics in Russia," Working Papers 780, Economic Growth Center, Yale University.
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    Cited by:

    1. Cilasun, Seyit Mumin & Acar, Elif Oznur & Gunalp, Burak, 2015. "The Effects of Labor Market Reforms on the Labor Market Dynamics in Turkey," MPRA Paper 64767, University Library of Munich, Germany.
    2. Ceyhun ELGİN & Tolga Umut KUZUBAŞ, 2012. "Wage-Productivity Gap in Turkish Manufacturing Sector," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 27(316), pages 09-31.
    3. Serdar Selçuk & Orhan Torul, 2016. "A note on the intertemporal labor dynamics in Turkey," Economics Bulletin, AccessEcon, vol. 36(4), pages 2063-2079.
    4. Emine Boz & Bora Durdu & Nan Li, 2009. "Labor market search in emerging economies," International Finance Discussion Papers 989, Board of Governors of the Federal Reserve System (U.S.).
    5. Andres Fernandez & Juan Herreno, 2013. "Equilibrium Unemployment during Financial Crises," Research Department Publications IDB-WP-390, Inter-American Development Bank, Research Department.
    6. Değer Eryar & Hasan Tekgüç, 2014. "Gender Effect in Explaining Mobility Patterns in the Labor Market: A Case Study of Turkey," The Developing Economies, Institute of Developing Economies, vol. 52(4), pages 322-350, December.
    7. Niels-Hugo Blunch & Victor Sulla, 2014. "World gone wrong: the financial crisis, labor market transitions and earnings in Serbia," Economic Change and Restructuring, Springer, vol. 47(3), pages 187-226, August.
    8. Deger Eryar & Hasan Tekguc, 2012. "Gender Effect in Explaining the Mobility Patterns in the Labor Market: A Case Study from Turkey," Working Papers 2012-01, Mardin Artuklu Univeristy, Department of Economics.
    9. Seçil KAYA BAHÇE & Emel MEMİŞ, 2014. "The Uncounted Who Wish to Work – Distinct to the Unemployed or Similar?," Sosyoekonomi Journal, Sosyoekonomi Society, issue 21(21).
    10. Heshmati, Almas, 2007. "Labor Market Policy Options of the Kurdistan Regional Government," IZA Discussion Papers 3247, Institute of Labor Economics (IZA).
    11. Fares, Jean & Tiongson, Erwin R., 2007. "Youth unemployment, labor market transitions, and scarring : evidence from Bosnia and Herzegovina, 2001-04," Policy Research Working Paper Series 4183, The World Bank.
    12. Blunch, Niels-Hugo & Sulla, Victor, 2011. "The Financial Crisis, Labor Market Transitions and Earnings: A Gendered Panel Data Analysis for Serbia," IZA Discussion Papers 6151, Institute of Labor Economics (IZA).
    13. Unay-Gailhard, İlkay, 2016. "Job access after leaving education: A comparative analysis of young women and men in rural Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1355-1381.
    14. Eryar, Değer & Tekgüç, Hasan, 2013. "Gender effect in explaining the mobility patterns in the labor market: a Case study from Turkey," MPRA Paper 46006, University Library of Munich, Germany.

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    More about this item

    Keywords

    panel data; unemployment; transition probabilities; gender; Turkey;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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