AN EMPIRICAL ANALYSIS OF THE FACTORS DETERMINE UNEMPLOYMENT IN TURKEY
In this study, determinants of unemployment for Turkey has been investigated with the help of Johansen Co-integration Method for the period 2000:Q1-2011Q1. According to findings a co-integration relation has been founded between variables; increases in confidence index of real sector decrease unemployment rate as expected but increases in the number of collective bargaining agreements for private sector have an increasing impact on unemployment. And according to Error Correction Model’s result; the error correction term coefficient (ECt-1) is negative and statistically significant as expected. Eventually approximately 23% deviations from the long-run equilibrium value eliminate in each period.
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