Unemployment hysteresis is called as increasing unemployment rates due to internal or external shocks in the economy, after the effects of shocks do not fall back to their old levels. Following the worldwide oil crisis in 1973, reducing unemployment rates has become one of the objectives of the main macroeconomic policies. After the oil crisis, studies on unemployment increased. In the study conducted by O. Blanchard and L. Summers in 1986, the concept of unemployment hysteresis was used for the first time and was introduced to the literature. The existence of the unemployment hysteria is important for the effectiveness of employment policies to combat national or international unemployment. In countries where unemployment hysteria exists, the effectiveness of employment policies remains low. However, in economies where there is no unemployment hysteria, unemployment is not among the reasons for macroeconomic instability. Therefore, before determining national employment policies, determining the validity of the unemployment hysteria in the labor market is of high importance in the determination and success of policies. This study Azerbaijan, Kyrgyzstan, Kazakhstan, Uzbekistan, Turkmenistan said on behalf of Turkey to help determine the employment policies of the countries from countries that are exploring the current state of the economy in the unemployment hysteria. In this study, the validity of the unemployment hysteresis of Azerbaijan, Kyrgyzstan, Kazakhstan, Uzbekistan, Turkmenistan which declared their independence with the disintegration of the USSR in 1991 and Turkey between 1991 and 2006 were investigated by Levin Lin Chu, Fisher type Augmented Diceky Fuller and Fisher Type Phillip Perron panel unit root tests. According to the findings of the research, it has been found that the unemployment hysteresis hypothesis is valid in the Turkic republics in this period.
Unemployment, Hysteresis, Turkish Republics, Panel Data Analysis, Unit Root
|Author :||Ahmet Tayfur AKCAN|
|Number of pages:||623-637|