Discouraged workers in the Turkish Labor Market:1988-2014

Year 2017, Volume: 3 Issue: 3, 734 - 750, 22.03.2017

Oktay Özden

https://doi.org/10.24289/ijsser.286640

Cited By: 1

Abstract

This study investigates the trends of and factors
behind discouraged workers in Turkey during the period 1988-2014. According to
ILO (1982), discouraged workers are those who wanted to work, but are not
employed, and not job seekers anymore because they believe there is no work
available for them. In this paper, it is put forward that the number of
discouraged workers in Turkey cannot be ignored. Using data from Turkstat,
World Development Indicators, and Turkish Ministry of Development, locally
weighted (LOESS) regressions are estimated for the possible determinants of
discouragement. The results demonstrate that discouragement increases rapidly
after a certain per capita income threshold is reached. Besides, as
unemployment increases, people are more eager to become discouraged, which is
an expected relationship. Surprisingly, in the recent period of increasing
employment, a rise both in the number and share of discouraged workers is
detected in Turkey. The crisis years (especially 2001) seriously accelerated
discouragement at higher secondary and tertiary school enrolment rates.
Furthermore, discouraged workers increased gradually as services value added
share increased, whereas industrial and agricultural value added shrank.
Urbanization also triggers discouragement. These findings are expected to have
important policy implications for Turkey, which tackles with significant issues
regarding unemployment levels and human capital development.

Keywords

Discouraged workers, unemployment, labor market, labor force, Loess

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