Unemployment and Labor Force Participation in Turkey

IZA Discussion Paper (Institute for the Study of Labor) No. 8834, February 2015

Aysit Tansel, Zeynel Abidin Ozdemir, Emre Aksoy *

This paper investigates the relationship between labor force participation rate and unemployment rate in Turkey a developing country. Cointegration analysis is carried out for the aggregate and gender and age specific series. The findings indicate that there is no long-run relationship between labor force participation and unemployment rates in Turkey. Thus, unlike in the case of the developed countries the unemployment invariance hypothesis is supported in Turkey.

* Aysit Tansel Middle East Technical University, IZA and ERF. Zeynel Abidin Ozdemir, Gazi University and ERF. Emre Aksoy, Kirikkale University.

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