Sectoral Employment and Labor Costs: Elasticity Evidence on Turkey

Çağaçan DEĞER

Article Details

Sectoral Employment and Labor Costs: Elasticity Evidence on Turkey

Authors:

Çağaçan DEĞER

Publisher:

Ege University

Journal:

Ege Strategic Research Journal 2011 Vol.2 Issue 2, pp.15-26

Document Type:

Article

Publication Date:

6/2011

Document Language:

Turkish

Document ID (Org No.):

2000953209

Frequency:

Monthly

eISSN:

2149-0465

pISSN:

1309-887X

Keywords:

Abstract:

 

A recurrent theme in employment policies is that reduction of labor costs would increase employment. This study aims to obtain a value for the employment elasticity of labor cost in Turkey through estimation of a sectoral employment equation. Using 3-digit ISIC Rev 3 industry data obtained from TURKSTAT, the present study performs a panel analysis. The calculated elasticities are positive, contradicting theoretical expectation., and pointing that cost reduction may not be a valid tool for employment expansion. It is also argued that the problem with the sign may be due to the data used and may actually be supportive of a wage curve. .

 

A recurrent theme in employment policies is that reduction of labor costs would increase employment. This study aims to obtain a value for the employment elasticity of labor cost in Turkey through estimation of a sectoral employment equation. Using 3-digit ISIC Rev 3 industry data obtained from TURKSTAT, the present study performs a panel analysis. The calculated elasticities are positive, contradicting theoretical expectation., and pointing that cost reduction may not be a valid tool for employment expansion. It is also argued that the problem with the sign may be due to the data used and may actually be supportive of a wage curve. .

Article Details

Sectoral Employment and Labor Costs: Elasticity Evidence on Turkey

Authors:

Çağaçan DEĞER

Publisher:

Ege University

Journal:

Ege Strategic Research Journal 2011 Vol.2 Issue 2, pp.15-26

Document Type:

Article

Publication Date:

6/2011

Document Language:

Turkish

Document ID (Org No.):

2000953209

Frequency:

Monthly

eISSN:

2149-0465

pISSN:

1309-887X

Labor cost

employment

panel analysis

Issues

Article Details

Sectoral Employment and Labor Costs: Elasticity Evidence on Turkey

Authors: Çağaçan DEĞER

Publisher: Ege University

Journal: Ege Strategic Research Journal 2011 Vol.2 Issue 2, pp.15-26

Document Type: Article

Publication Date: 6/2011

Document Language: Turkish

Document ID (Org No.): 2000953209

Frequency: Monthly

eISSN: 2149-0465

pISSN: 1309-887X

Labor cost

employment

panel analysis

Issues

Authors:

Çağaçan DEĞER

Publisher:

Ege University

Journal:

Ege Strategic Research Journal 2011 Vol.2 Issue 2, pp.15-26

Document Type:

Article

Publication Date:

6/2011

Document Language:

Turkish

Document ID (Org No.):

2000953209

Frequency:

Monthly

eISSN:

2149-0465

pISSN:

1309-887X