- Ege Stratejik Araştırmalar Dergisi
- Vol: 2 Issue: 2
- Sectoral Employment and Labor Costs: Elasticity Evidence on Turkey
Sectoral Employment and Labor Costs: Elasticity Evidence on Turkey
Authors : Çağaçan Değer
Pages : 15-26
Doi:10.18354/esam.81742
View : 16 | Download : 4
Publication Date : 2011-07-01
Article Type : Other
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.Keywords : Labor cost, employment, panel analysis