Unemployment and Vacancies in Turkey: The Beveridge Curve and Matching Function

Unemployment and Vacancies in Turkey: The Beveridge Curve and Matching Function

Title : Unemployment and Vacancies in Turkey: The Beveridge Curve and Matching Function
Number : 13/35
Author(s) : Birol Kanık, Enes Sunel, Temel Taşkın
Language : İngilizce
Date : September 2013
Abstract : In this paper, we study the Beveridge curve and the matching function in Turkey. The analysis illustrates that the empirical Beveridge curve for the 2005:M1-2013:M2 period posits a negative relationship between unemployment and vacancies. When the sample period is divided into sub-periods around the recent global financial crisis, the unemployment-vacancies pairs are found to follow a counterclockwise trajectory (around the empirical Beveridge curve) during the transition from trough into the recovery. The estimation of the matching function implies that the congestion externality of unemployment on job finding is in line with the literature. Disaggregation of the Beveridge curve suggests that recent labor market reforms were beneficial for the targeted employment groups.
Keywords : Beveridge curve; unemployment; matching function.
JEL Codes : J20; J63; J64

 

Unemployment and Vacancies in Turkey: The Beveridge Curve and Matching Function
CENTRAL BANK OF THE REPUBLIC OF TURKEY Head Office Anafartalar Mah. İstiklal Cad. No:10 06050 Ulus Altındağ Ankara Phone : (+90 312) 507 50 00 | Fax : (+90 312) 507 56 40