A service provided by the WU Library and the WU IT-Services

The controversy over employment policy: Low labor costs and openness, or demand policy? A sectoral analysis for Turkey.

Onaran, Özlem and Aydiner-Avsar, Nursel (2006) The controversy over employment policy: Low labor costs and openness, or demand policy? A sectoral analysis for Turkey. Department of Economics Working Paper Series, 97. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.

[img]
Preview
PDF
Download (140Kb) | Preview

Abstract

The purpose of this paper is to test the effects of labor cost, openness, and demand side variables on employment for the case of Turkey using the panel data of private manufacturing industry at three digit level for 25 sectors for the period of 1973-2001. We use a seemingly unrelated regression (SUR) model, which allows for cross-sectoral heterogeneity. The estimation results show that higher growth is more effective in stimulating employment compared to lower labor costs. The reliance of Turkey and many developing countries on labor market flexibility and openness as the unique tools of employment policy reflects a pro-capital incomes policy bias rather than a necessity. The results confirm the Keynesian emphasis on demand-side policies to fight against unemployment.

Item Type: Paper
Keywords: labor demand / structural adjustment / labor market flexibility / trade liberalization
Classification Codes: RVK QG 500 ; JEL J23, E24, F16
Divisions: Departments > Volkswirtschaft
Depositing User: Repository Administrator
Date Deposited: 03 Aug 2006 12:07
Last Modified: 15 Sep 2017 15:18
URI: http://epub.wu.ac.at/id/eprint/1464

Actions

View Item