The Unemployment Rate and Labor Force Participation Rate Nexus for Female: Evidence from Turkey

Zekeriya Yildirim

Abstract


This paper investigates the relationship between unemployment rate and labor force participation rate for urban women in Turkey. By conducting our cointegration analysis on the aggregate and education-specific data, we find that there is a long-run relationship between the two variables for better-educated urban women, but not for total and less-educated urban women. Thus, our analysis reveals no evidence that high unemployment rate is a main driving force behind both the puzzle of low female labor force participation and the under-participation trap.  Long-run estimates for better-educated urban women show that a 1% increase in unemployment rate causes an increase in labor force participation rate between of 0.64% and 0.74%. The finding implies that there exists the added-worker effect for better-educated female in urban areas. Furthermore, the results of tests on causality show evidence of both short- and long-run unidirectional causality running from unemployment rate to labor force participation rate, but not vice versa.

 


Full Text: PDF DOI: 10.5539/ijef.v6n5p139

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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