Macroeconomic Policy and Unemployment by Economic Activity: Evidence from Turkey

Creative Commons License

BERUMENT M. H., DOĞAN N., TANSEL A.

EMERGING MARKETS FINANCE AND TRADE, vol.45, no.3, pp.21-34, 2009 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 45 Issue: 3
  • Publication Date: 2009
  • Doi Number: 10.2753/ree1540-496x450302
  • Journal Name: EMERGING MARKETS FINANCE AND TRADE
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.21-34
  • Keywords: macroeconomic policy shocks, unemployment by economic activity, MEASURING MONETARY-POLICY, COINTEGRATED SYSTEMS, BUSINESS-CYCLE, INTEREST-RATES, INFLATION, BEHAVIOR, VECTORS, MODELS, OUTPUT, SHOCKS
  • Middle East Technical University Affiliated: Yes

Abstract

This paper investigates how various macroeconomic policy shocks in Turkey affect unemployment and provides evidence on the differential responses of unemployment in selected sectors of economic activity. Our paper extends previous work in two respects. First, we consider not only the response of total unemployment, but also the response of unemployment by selected sectors of economic activity. Second, we consider not only the effect of monetary policy shocks, but also the effects of several other macroeconomic shocks. The results indicate that unemployment in different sectors of economic activity responds differently to various macroeconomic policy shocks.