The Discouraged Worker Effect and the Added Worker Effect within the Framework of European Debt Crisis

Abstract

The debt crisis experienced in Europe has had several adverse effects on economies of countries. Employment is one of the adversely affected areas. The relationship between the labor force participation rate and unemployment is essentially examined within the framework of two hypotheses. These hypotheses are “The Discouraged Worker Effect” and “The Added Worker Effect”. The discouraged worker effect anticipates that workers looking for employment for extended periods of time will withdraw from the labor market due to losing hope in periods of economic recession. According to this hypothesis, it is expected that the labor force participation rate will increase once the unemployment rate decreases and vice versa. The added worker effect anticipates that if the worker who provides the livelihood of the family becomes unemployed, other members of the family will participate in the labor market. According to this hypothesis, it is expected that the labor force participation rate will decrease once the unemployment rate decreases and vice versa. This study aims to test whether these two effects apply to selected Euro zone countries (PIIGGS-Portugal, Ireland, Italy, Greece, Great Britain, Spain) during the European Debt Crisis.

Keywords

• Discouraged Worker Effect,Added Worker Effect

Avrupa Borç Krizi Çerçevesinde Cesareti Kırılmış İşçi Etkisi ve İlave-İşçi Etkisi

Abstract

Avrupa’da yaşanan borç krizinin ülke ekonomileri üzerinde birçok olumsuz etkisi olmuştur. Bu olumsuz etkilerden biride istihdam üzerinedir. Literatürde işgücüne katılma oranı ile işsizlik arasındaki ilişki temelde iki hipotez çerçevesinde incelenmiştir. Bu hipotezler “Cesareti Kırılmış İşçi Etkisi” ve “İlave –İşçi Etkisi”dir. Cesareti kırılmış işçi etkisine göre ekonomik durgunluğun olduğu dönemlerde uzun süredir iş arayan bireylerin iş bulma ümidini yitirmeleri sonucunda emek piyasalarından ayrılacağını öngörmektedir. Bu öngörüde işsizlik oranı azaldığında işgücüne katılma oranının artacağı ya da tersi durumun oluşması beklenmektedir. İlave-işçi etkisi ise yine ekonomik durgunluğun olduğu dönemlerde ailenin geçimini sağlayan kişinin işsiz kalması sonucu diğer aile bireylerinin emek piyasasına katılacağını öngörmektedir. Bu öngörüde işsizlik oranı azaldığında işgücüne katılma oranının da azalacağı ya da tersi durumun oluşması beklenmektedir. Çalışmamızda bu iki etkinin Avrupa borç krizinde seçilmiş Euro bölgesi ülkelerinde (PIIGGS-Portekiz, İrlanda, İtalya, Yunanistan, Birleşik Krallık, İspanya) geçerli olup olmadığı test edilecektir.

Keywords

• Cesareti kırılmış işçi etkisi,İlave-işçi etkisi

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