THE EFFECTS OF TECHNOLOGICAL DEVELOPMENT ON EMPLOYMENT: THE CASE OF TURKEY


The technological advancement, which has brought many conveniences with it, offers the humankind new products and services. From this aspect, technology has significant effects on production and employment. There are different opinions on the direction of its effect on employment; the concerns emphasizing that it will reduce the rate of employment necessitate a research on this relationship. For this reason, for the employment policies, it is very important to determine how the technological advancement will affect the rate of employment because the technology affects the production process as both an input and output of it. In this regard, based on the technology-employment relationship in Turkey between 1989 and 2017, the present study investigates the effect of technological advancement on total employment, employment of educated individuals, and employment of women. The main objective of this study is to examine the net effect of technological advancement on the total employment for the specified period. Besides that, it is also aimed to investigate the effect on employment of educated individuals and employment of women in order to analyze the effect of technological advancement on the structure of employment. In this study, by using the annual data covering the period between 1989 and 2017 in Turkey, a time-series analysis is performed. The relationship between the variables is investigated using the ARDL approach and three different models. In the first model, in which the net effect of technological change on total employment is investigated, it is concluded that technology has a negative effect on total employment. In the second model, the effect of technological change on the employment of educated individuals is examined. The results suggest that long-term relationship between technological advancement and employment of educated individuals is insignificant. Finally, in the third model, the effect of technology on employment of women is analyzed. According to the results of estimations, technological advancement negatively affects the employment of women.


Keywords


Employment, Technological Change, ARDL

Author : Tuba ŞAHİNOĞLU -Mehmet VARICI
Number of pages: 617-640
DOI: http://dx.doi.org/10.29228/TurkishStudies.39022
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Turkish Studies-Information Technologies and Applied Sciences
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