Hysteresis effect on young female unemployment in Türkiye: Evidence from Fourier ADF Unit Root Test

Şeyma Şahin Kutlu

Article Details

Hysteresis effect on young female unemployment in Türkiye: Evidence from Fourier ADF Unit Root Test

Authors:

Şeyma Şahin Kutlu

Publisher:

Bolu Abant Izzet Baysal University

Journal:

Abant Sosyal Bilimler Dergisi Vol.23 Issue 1, pp.526-537

Document Type:

Article

Publication Date:

3/2023

Document Language:

Turkish

Document ID (Org No.):

2001286784

pISSN:

2757-9425

Keywords:

Abstract:

 This study aims to examine unemployment hysteresis from the perspective of female youth unemployment in the Türkiye economy. The analysis includes the periods 2005Q1-2020Q2, and quarterly data is used. Traditional root tests are often used in the literature to test unemployment hysteresis. However, considering the disadvantages of traditional unit root tests, it is concluded that the Fourier function unit root test is more appropriate. The FADF were preferred as the empirical analysis method. The empirical results indicate that the youth unemployment rate in Türkiye is non-stationary. So, it was concluded that the hysteresis effect is valid in young female unemployment in Türkiye. This empirical finding shows that youth unemployment rates in Türkiye are inflexible to return to the long-term equilibrium determined by the labor markets. Therefore, policymakers should determine employment policies to reduce negative shocks to young females in the labor market.

 This study aims to examine unemployment hysteresis from the perspective of female youth unemployment in the Türkiye economy. The analysis includes the periods 2005Q1-2020Q2, and quarterly data is used. Traditional root tests are often used in the literature to test unemployment hysteresis. However, considering the disadvantages of traditional unit root tests, it is concluded that the Fourier function unit root test is more appropriate. The FADF were preferred as the empirical analysis method. The empirical results indicate that the youth unemployment rate in Türkiye is non-stationary. So, it was concluded that the hysteresis effect is valid in young female unemployment in Türkiye. This empirical finding shows that youth unemployment rates in Türkiye are inflexible to return to the long-term equilibrium determined by the labor markets. Therefore, policymakers should determine employment policies to reduce negative shocks to young females in the labor market.

 This study aims to examine unemployment hysteresis from the perspective of female youth unemployment in the Türkiye economy. The analysis includes the periods 2005Q1-2020Q2, and quarterly data is used. Traditional root tests are often used in the literature to test unemployment hysteresis. However, considering the disadvantages of traditional unit root tests, it is concluded that the Fourier function unit root test is more appropriate. The FADF were preferred as the empirical analysis method. The empirical results indicate that the youth unemployment rate in Türkiye is non-stationary. So, it was concluded that the hysteresis effect is valid in young female unemployment in Türkiye. This empirical finding shows that youth unemployment rates in Türkiye are inflexible to return to the long-term equilibrium determined by the labor markets. Therefore, policymakers should determine employment policies to reduce negative shocks to young females in the labor market.

 Bu çalışmada Türkiye ekonomisinde işsizlik histerisinin varlığı genç kadın işsizliği bağlamında ampirik olarak test edilmiştir. Çalışmanın veri aralığı 2005Q1-2020Q2 dönemini kapsamaktadır ve analizler çeyrek dönemlik veriler kullanılarak gerçekleştirilmiştir. Literatürde işsizlik histerisini araştırmak için geleneksel birim kök testleri sıklıkla kullanılmaktadır. Ancak geleneksel birim kök testlerinin dezavantajları göz önüne alındığında, Fourier fonksiyonlu birim kök testinin daha uygun olduğu çıkarımı yapılmaktadır. Bu doğrultuda analizler Fourier Augmented Dickey-Fuller FADF birim kök testi ile gerçekleştirilmiştir. Ampirik sonuçlar, Türkiyede genç kadın işsizlik oranının durağan olmadığını göstermektedir. Dolayısıyla Türkiyede genç kadın işsizliğinde histeri etkisinin geçerli olduğu sonucuna varılmıştır. Raporlanan bu ampirik bulgu, Türkiyede genç kadın işsizlik oranlarının işgücü piyasaları tarafından belirlenen uzun vadeli dengesine geri dönmek için esnek olmadığını göstermektedir. Bu nedenle politika yapıcılar işgücü piyasasında genç kadınlara yönelik olumsuz şokları azaltmaya yönelik istihdam politikaları belirlemelidir.

Article Details

Hysteresis effect on young female unemployment in Türkiye: Evidence from Fourier ADF Unit Root Test

Authors:

Şeyma Şahin Kutlu

Publisher:

Bolu Abant Izzet Baysal University

Journal:

Abant Sosyal Bilimler Dergisi Vol.23 Issue 1, pp.526-537

Document Type:

Article

Publication Date:

3/2023

Document Language:

Turkish

Document ID (Org No.):

2001286784

pISSN:

2757-9425

Young female unemployment

hysteresis hypothesis

FADF

Genç kadın işsizliği

histeri hipotezi

FADF

Issues

Article Details

Hysteresis effect on young female unemployment in Türkiye: Evidence from Fourier ADF Unit Root Test

Authors: Şeyma Şahin Kutlu

Publisher: Bolu Abant Izzet Baysal University

Journal: Abant Sosyal Bilimler Dergisi Vol.23 Issue 1, pp.526-537

Document Type: Article

Publication Date: 3/2023

Document Language: Turkish

Document ID (Org No.): 2001286784

pISSN: 2757-9425

Young female unemployment

hysteresis hypothesis

FADF

Genç kadın işsizliği

histeri hipotezi

FADF

Issues

Authors:

Şeyma Şahin Kutlu

Publisher:

Bolu Abant Izzet Baysal University

Journal:

Abant Sosyal Bilimler Dergisi Vol.23 Issue 1, pp.526-537

Document Type:

Article

Publication Date:

3/2023

Document Language:

Turkish

Document ID (Org No.):

2001286784

pISSN:

2757-9425