Detalle Publicación

ARTÍCULO
Long memory in Turkish unemployment rates
Autores: Gil Alaña, Luis Alberiko (Autor de correspondencia); Ozdemir, Z. A.; Tansel, A.
Título de la revista: EMERGING MARKETS FINANCE AND TRADE
ISSN: 1540-496X
Volumen: 55
Número: 1
Páginas: 201 - 217
Fecha de publicación: 2019
Resumen:
In this article 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 the majority of the cases. This implies lack of mean reversion and persistence 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 nonlinearities 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. Thus, for example, positive shocks reducing unemployment will have permanent effects being good for the economy, but negative shocks increasing unemployment will also have permanent effects and strong measures should then be adopted to reduce it. Labor and macroeconomic policies will most likely have long-lasting effects on the unemployment rates.