Long memory in Turkish unemployment rates / Luis A. Gil-Alana (University of Navarra and ICS), Zeynel Abidin Ozdemir (Gazi University and ERF), Aysit Tansel (Middle East Technical University, IZA and ERF) ; IZA Institute of Labor Economics
VerfasserGil-Alaña, Luis A. ; Ozdemir, Zeynel Abidin ; Tansel, Aysıt
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, September 2017
Elektronische Ressource
Umfang1 Online-Ressource (36 Seiten) : Diagramme
SerieDiscussion paper ; no. 11053
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Long memory in Turkish unemployment rates [0.64 mb]
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In this paper we have examined the unemployment rate series in Turkey by using long memory models and in particular employing fractionally integrated techniques. Our results suggest that unemployment in Turkey is highly persistent, with orders of integration equal to or higher than 1 in most cases. This implies lack of mean reversion and permanence of the shocks. We found evidence in favor of mean reversion in the case of female unemployment and this happens for all the groups of non-agricultural, rural, urban and youth unemployment series. The possibility of non-linearities are observed only in the case of female unemployment and the degree of persistence is higher in the cases of female and youth unemployment series. Important policy implications emerge from our empirical results. Labor and macroeconomic policies will most likely have long lasting effects on the unemployment rates.