Intensive Margin and Extensive Margin Adjustments of Labor Market : Turkey versus United States
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 is substantially smaller than that of the extensive margin in both countries. This is robust to using various data sets and methods. Common wisdom and some theory would expect these countries to divert from each other significantly, because they represent two extreme points of labor market exibility with respect to OECD Employment Protection Index. A possible explanation for our empirical 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, and high hours per worker which might restrict the intensive margin adjustment, especially during booms.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Head Office, Istiklal Cad. 10 Ulus, 06100 Ankara|
Phone: (90 312) 507 5000
Fax: (90 312) 507 5640
Web page: http://www.tcmb.gov.tr
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shigeru Fujita & Garey Ramey, 2007.
"The cyclicality of separation and job finding rates,"
07-19, Federal Reserve Bank of Philadelphia.
- Shigeru Fujita & Garey Ramey, 2009. "The Cyclicality Of Separation And Job Finding Rates," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 415-430, 05.
- Lee E. Ohanian & Andrea Raffo, 2011.
"Aggregate Hours Worked in OECD Countries: New Measurement and Implications for Business Cycles,"
NBER Working Papers
17420, National Bureau of Economic Research, Inc.
- Ohanian, Lee E. & Raffo, Andrea, 2012. "Aggregate hours worked in OECD countries: New measurement and implications for business cycles," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 40-56.
- Lee E. Ohanian & Andrea Raffo, 2011. "Aggregate hours worked in OECD countries: new measurement and implications for business cycles," International Finance Discussion Papers 1039, Board of Governors of the Federal Reserve System (U.S.).
- Yongsung Chang & Noh-Sun Kwark, 2000.
"Decomposition of Hours Based on Extensive and Intensive Margins of Labor,"
Econometric Society World Congress 2000 Contributed Papers
1416, Econometric Society.
- Chang, Yongsung & Kwark, Noh-Sun, 2001. "Decomposition of hours based on extensive and intensive margins of labor," Economics Letters, Elsevier, vol. 72(3), pages 361-367, September.
- Morten O. Ravn & Harald Uhlig, 2002. "On adjusting the Hodrick-Prescott filter for the frequency of observations," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 371-375.
- François Langot & Coralia Quintero-Rojas, 2009.
"European vs American Hours Worked: assessing the role of the extensive and intensive margins,"
AccessEcon, vol. 29(2), pages 530-542.
- Langot, François & Quintero Rojas, Coralia, 2008. "European vs. American Hours Worked: Assessing the Role of the Extensive and Intensive Margins," IZA Discussion Papers 3846, Institute for the Study of Labor (IZA).
- Yongsung Chang & Sun-Bin Kim & Kyooho Kwon & Richard Rogerson, 2014.
"Individual and Aggregate Labor Supply in a Heterogeneous Agent Economy with Intensive and Extensive Margins,"
RCER Working Papers
583, University of Rochester - Center for Economic Research (RCER).
- Yonsung Chang & Sun-Bin Kim & Kyooho Kwon, 2012. "Individual and Aggregate Labor Supply in a Heterogeneous Agent Economy with Intensive and Extensive Margins," Working papers 2012rwp-48, Yonsei University, Yonsei Economics Research Institute.
- Lei Fang & Richard Rogerson, 2007.
"Policy Analysis in a Matching Model with Intensive and Extensive Margins,"
NBER Working Papers
13007, National Bureau of Economic Research, Inc.
- Lei Fang & Richard Rogerson, 2009. "Policy Analysis In A Matching Model With Intensive And Extensive Margins," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(4), pages 1153-1168, November.
- Cho, J-O. & Cooley, T.F., 1988.
"Employment And Hours Over The Business Cycle,"
88-03, Rochester, Business - General.
- Blundell, Richard & Bozio, Antoine & Laroque, Guy, 2011.
"Extensive and Intensive Margins of Labour Supply: Working Hours in the US, UK and France,"
IZA Discussion Papers
6051, Institute for the Study of Labor (IZA).
- Richard Blundell & Antoine Bozio & Guy Laroque, 2011. "Extensive and intensive margins of labour supply: working hours in the US, UK and France," IFS Working Papers W11/01, Institute for Fiscal Studies.
- Hansen, Gary D., 1985.
"Indivisible labor and the business cycle,"
Journal of Monetary Economics,
Elsevier, vol. 16(3), pages 309-327, November.
- Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
- Dennis Wesselbaum, 2011. "The Intensive Margin Puzzle and Labor Market Adjustment Costs," Kiel Working Papers 1701, Kiel Institute for the World Economy.
- Rand, John & Tarp, Finn, 2002.
"Business Cycles in Developing Countries: Are They Different?,"
Elsevier, vol. 30(12), pages 2071-2088, December.
- Rand, John & Tarp, Finn, 2001. "Business Cycles in Developing Countries: Are They Different?," MPRA Paper 62445, University Library of Munich, Germany.
- Harun ALP & Yusuf Soner BAŞKAYA & Mustafa KILINÇ & Canan YÜKSEL, 2011. "Estimating Optimal Hodrick-Prescott Filter Smoothing Parameter for Turkey," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 26(306), pages 09-23.
- Emmanuel Saez, 2002. "Optimal Income Transfer Programs: Intensive versus Extensive Labor Supply Responses," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 1039-1073.
When requesting a correction, please mention this item's handle: RePEc:tcb:wpaper:1339. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ozlem Ekmekciler Ramalho Rocha)or (Ilker Cakar)
If references are entirely missing, you can add them using this form.