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

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ŞAHİN A., Tansel A., BERUMENT M. H.

BULLETIN OF ECONOMIC RESEARCH, cilt.67, sa.3, ss.265-288, 2015 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 67 Sayı: 3
  • Basım Tarihi: 2015
  • Doi Numarası: 10.1111/boer.12017
  • Dergi Adı: BULLETIN OF ECONOMIC RESEARCH
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.265-288
  • Anahtar Kelimeler: employment, output, seasonal cointegration, C32, E24, E32, OKUNS LAW, UNITED-STATES, TIME-SERIES, UNEMPLOYMENT, COINTEGRATION, INDUSTRIES, DYNAMICS, GROWTH, RECESSIONS, SERVICES
  • Orta Doğu Teknik Üniversitesi Adresli: Hayır

Özet

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.