 1 - Overview of the Labor Market in Turkey (download 494 KB)
| This chapter provides an overview of the demographic and structural factors that have underpinned Turkey’s labor market performance. The main findings of this chapter are:
- A rapid demographic transition has temporarily raised population growth and skewed the age structure toward the young. Most of the population growth is occurring in urban areas.
- A rapid increase in the working age population coincided with a structural transformation away from labor-intensive agriculture toward industry and services.
- Therefore, increasing trend growth of output and employment in these two latter sectors will have to form the basis for employment generation.
. | | 2 - Growth, Macroeconomics, and Labor Market Outcomes (download 302 KB) | This chapter examines the economy-wide factors that have impacted the demand for labor. The analysis includes a review of output growth, productivity, and employment growth as employment shifts away from agriculture and toward industry and services. The impact of macroeconomic outcomes on the labor market is evaluated and an analysis of the international competitiveness of Turkish labor is presented.
. | | 3 - Labor Market Dynamics (download 1991 KB) | This chapter uses household labor force surveys collected between 1988 and 2004 to drill down into some of the labor market dynamics identified in chapter 1. The chapter reviews evolving trends in labor force participation over the period with a focus on establishing patterns of entry to and exit from the labor force, and examining how these have been changing over time. Particular attention is paid to the impact of the change in pension rules in 1993. The chapter also appraises the changing structure of the work force, with the shift from agriculture to industry and services, as well as the growing informality in the labor market. A discussion of the evolution of wages based on nationally representative household surveys is provided for the first time. Key patterns by sector, age, education, and gender are reviewed, as is an analysis of how the returns to labor have been evolving over time.
. | | 4 - Labor Market Regulations and Institutions (download 602 KB) | The final chapter reviews the impact of labor market regulations and institutions on the goals of labor market regulation: to encourage job creation but also to minimize risk of job loss to workers. It evaluates the effect of informality on the goal of worker protection. The chapter places Turkey’s labor market regulations and institutions in an international context, and evaluates the likely impact of these regulations and institutions on labor supply and demand, based on international experience and the analysis in the earlier chapters which provides the basis for detailed recommendations for labor market reform that will support job creation and provide worker protection.
. | | Appendixes (download 1007 KB) | The UISIM model, results of UI simulations, results of the simulations with reduced real interest rates, and characteristics of unemployment benefit systems, Turkey and transition countries tables are presented in this section.
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