OUTPUT-EMPLOYMENT RELATIONSHIP ACROSS SECTORS: A LONG- VERSUS SHORT-RUN PERSPECTIVE

Date

2015-07-01

Author

ŞAHİN, AFŞİN
Tansel, Aysıt
BERUMENT, MAHMUT HAKAN

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This paper investigates the nature of the output-employment relationship by using the Turkish quarterly data for the period 1988-2008. Even if we fail to find a long-run relationship between aggregate output and total employment, there are long-run relationships for the aggregate output with non-agricultural employment and sectoral employment levels for seven of nine sectors that we consider. However, a further investigation for the output and employment relationship within a short-run perspective does not reveal statistically significant relationships for either total employment or non-agriculture employment, or eight of the nine sectors that we consider. Although there are various long-run relationships between output and employment, the short-run links between demand and employment are weak. The various implications of this for the economy and the labour market are discussed. As a result, maintaining high levels of output in the long-run creating demand is essential for employment generation.

Subject Keywords

Employment, Output, Seasonal cointegration

URI

https://hdl.handle.net/11511/31807

Collections

Graduate School of Social Sciences, Article