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In Limbo: Exploring transition to discouragement

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Listed author(s):
  • Gürbüz, Ayça Akarcay

    (Galatasaray University Economic Research Center)

  • Polat, Sezgin

    ()

    (Galatasaray University Economic Research Center)

  • Ulus, Mustafa

    (Galatasaray University Economic Research Center)

Abstract

Over the last decade, alongside high unemployment rates, the number of discouraged workers remained high in Turkey indicating a structural problem of the labor market. Moreover, the ratio of men among discouraged workers is particularly important compared to other OECD countries where the discouragement is thought to be related to gender issues. Discouraged worker literature mainly investigates differences in the transition rates from unemployment and discouragement into employment. Few studies, however, explicitly explore who becomes discouraged and why. In the Turkish labor market, the average transition from unemployment into discouragement is important and displays vast inter-regional disparities implying that local labor market (LLM) conditions matter. This paper aims to address factors affecting transition to discouragement in the Turkish labor market using pooled cross-section data from household labor force surveys for the period between 2006 and 2011, considering individual and household characteristics, as well as various LLM conditions. Our findings indicate that low qualifications and poor market conditions both lead to higher discouragement.

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Paper provided by Galatasaray University Economic Research Center in its series GIAM Working Papers with number 13-4.

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Length: 29 pages
Date of creation: 10 Mar 2013
Handle: RePEc:ris:giamwp:2013_004
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Keywords: Discouraged workers; Local labor market; Transition; Cross-section data; Job search;

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Find related papers by JEL classification:
  • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
  • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
  • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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