Sectoral Employment and Labor Costs: Elasticity Evidence on Turkey

Yıl 2011, , 15 - 26, 01.07.2011

Çağaçan Değer

https://doi.org/10.18354/esam.81742

Öz

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.

Anahtar Kelimeler

Labor cost, employment, panel analysis

Kaynakça

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