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The purpose of this paper is to explore the long-run relationship between unemployment rate (UR) and labor force participation rate (LFPR) for men and women in Canada. Given that there are differences in the URs and participation rates of men and women, the authors perform separate analysis for them also.

The authors use co-integration analysis to investigate the existence of a long-run relationship between UR and LFPR in Canada using time series monthly data for the past 40 years.

The finding that there is long-run relationship between UR and LFPR leads the authors to doubt the pertinence of the unemployment invariance hypothesis for Canada. The authors further find evidence for added-worker effect for men and discouraged-worker effect for women in Canada and the authors elaborate on the possible explanations for this seemingly contradictory finding.

The lack of support for the unemployment invariance hypotheses implies that changes in the participation rate which may be due to aging population, policies of early retirement or constraints on working time will affect the UR in the long run.

This paper investigates the unemployment invariance hypothesis in Canada to come up with policy implications about long-run UR. The authors further elaborate on the possible explanations for the added-worker effect for men and the discouraged-worker effect for women that the authors find in this study.

This paper, the first one to use individual-level Turkish panel data, examines the labor market transitions in Turkey along the formal/informal employment divide. The purpose of this paper is to contribute to the limited body of empirical evidence available on mobility and informality in the Turkish labor market.

Toward this end, the authors use Turkish income and Living Conditions Survey panel data for 2006, 2007, 2008 and 2009 to compute the Markov transition probabilities of individuals moving across six different labor market states: formal-salaried (FS), informal-salaried, formal self-employed, informal self-employed, unemployed and inactive. In order to examine the nature of mobility patterns in more detail, the authors then estimate six multinomial logit models individually for each transition adopting a number of individual and employment characteristics as explanatory variables.

The authors find evidence that mobility patterns are fairly similar across different time spans, the probability of remaining in initial state is higher than the probability of transition into another state for all the labor market states, except for unemployment, there is only very limited mobility into the FS state. Gender, education and sector of economic activity are observed to display significant effects on mobility patterns. The results reveal several relationships between the covariates and likelihood of variant transitions.

This study provides a comprehensive and detailed diagnosis of the Turkish labor market. The market is observed to display a rather static structure throughout the period considered. The results indicate that a well recognition of underlying dynamics may help policy makers to produce various effective tools for addressing informality.

First study to analyze labor market mobility across formal/informal sectors using newly available panel data.

This chapter aims to provide the recent developments on the supplementary education system in Turkey. The national examinations for advancing to higher levels of schooling are believed to fuel the demand for Supplementary Education Centers (SECs). Further, we aim to understand the distribution of the SECs and of the secondary schools across the provinces of Turkey in order to evaluate the spacial equity considerations.

The evolution of the SECs and of the secondary schools over time are described and compared. The provincial distribution of the SECs, secondary schools, and the high school age population are compared. The characteristics of these distributions are evaluated to inform about spatial equity issues. The distribution of high school age population that attend secondary schools and the distribution of the secondary school students that attend SECs across the provinces are compared.

The evidence points out to significant provincial variations in various characteristics of SECs and the secondary schools. The distribution of the SECs is more unequal than that of the secondary schools. The provinces located mostly in the east and south east of the country have lower quality SECs and secondary schools. Further, the SEC participation among the secondary school students and the secondary school participation among the relevant age group are lower in some of the provinces indicating major disadvantages.

The review of the most recent developments about the SECs, examination and comparison of provincial distributions of the SECs and of the secondary schools are novelties in this chapter.

This study investigates the formal/informal employment earnings gap in Turkey. We focus on the earnings differentials that can be explained by observable characteristics and unobservable time-invariant individual heterogeneity. We first, estimate the standard Mincer earnings equations using ordinary least squares (OLS), controlling for individual, household, and job characteristics. Next we use, panel data and the quantile regression (QR) techniques in order to account for unobserved factors which might affect the earnings and the intrinsic heterogeneity within formal and informal sectors. OLS results confirm the existence of an informal sector penalty almost half of which is explained by observable variables. We find that formal-salaried workers are paid significantly higher than their informal counterparts and of the self-employed confirming the heterogeneity within the informal employment. QR results show that pay differentials are not uniform along the earnings distribution. In contrast to the mainstream literature which views informal self-employment as the upper-tier and wage-employment as the lower-tier, we find that self-employment corresponds to the lower-tier in the Turkish labor market. Finally, fixed effects estimation indicates that unobserved individual characteristics combined with controls for observable characteristics explain the pay differentials between formal and informal employment entirely in the total and the female sample. However, informal sector penalty persists in the male sample.

The purpose of this paper is to investigate the job satisfaction in relation to managerial attitudes towards employees and firm size using the linked employer-employee survey results in Britain.

The authors first investigate the management-employee relationships and the firm size using maximum likelihood probit estimation. Next various measures of job satisfaction are related to the management-employee relations via maximum likelihood ordered probit estimates. Four measures of job satisfaction that have not been used often are considered. They are satisfaction with influence over job; satisfaction with amount of pay; satisfaction with sense of achievement and satisfaction with respect from supervisors.

Main findings indicate that management-employee relationships are less satisfactory in the large firms than in the small firms. Job satisfaction levels are lower in large firms. Less satisfactory management-employee relationships in the large firms may be a major source of the observed lower level of job satisfaction in them.

These results have important policy implications from the point of view of the firm management while achieving the aims of their organizations in particular in the large firms in the area of management-employee relationships. Improving the management-employee relations in large firms will increase employee satisfaction in many respects as well as increase productivity and reduce turnover.

The nature of the management-employee relations with firm size and job satisfaction has not been investigated before.

Turkey’s first “brain drain” wave began in the 1960s, with doctors and engineers among the first group of emigrants. In recent years, attention has shifted to young university graduates who are seriously contemplating starting their careers abroad as a result of the current economic crisis. Postgraduate studies overseas provide the first step for many in fulfilling this goal. This paper provides an evaluation of the findings of a survey conducted during the first half of 2002 on the return intentions of Turkish students studying abroad. Various factors have been cited as important for student non‐return, including political instability, lower salaries and lack of employment opportunities in the home country when studies are completed, as well as a preference to live abroad. In addition to these factors, several other features of Turkey’s political economy are considered to be important in explaining the Turkish brain drain.

This study is concerned with the separate output effects of female and male education, as well as output effects of the educational gender gap. Several recent empirical studies have examined the gender effects of education on economic growth or on output level using the much exploited, familiar cross-country data. This paper aims to undertake a similar study of the gender effects of education on economic growth using a panel data across the provinces of Turkey for the period 1975-2000.

The theoretical basis of the estimating equations is the neoclassical growth model augmented to include separate female and male education capital and health capital variables. The methodology the authors use includes robust regression on pooled panel data controlling for regional and time effects. The results are found to be robust to a number of sensitivity analyses, such as elimination of outlier observations, controls for simultaneity and measurement errors, controls for omitted variables by including regional dummy variables, steady-state versus growth equations and different samples of developed and less-developed provinces of Turkey.

The main findings indicate that female education positively and significantly affects the steady-state level of labor productivity, while the effect of male education is in general either positive or insignificant. Separate examination of the effect of educational gender gap was to reduce output.

As evident in the literature, there is controversy surrounding the gender effects of education on growth. This paper provides new evidence on this issue from the perspective of a single country rather than a cross-country viewpoint.

Two major earthquakes which struck Northwestern Turkey in 1999 exposed rampant corruption involving construction and zoning code violations. The government’s relief efforts were tainted by corruption as well, and exhibited a great deal of incompetence. How voters responded to these in the next election held in 2002 is investigated. The fact that different group of parties were responsible for the construction of the shoddy buildings, and for the corruption and mismanagement related to relief, provided us with a unique opportunity to determine whether and how the electorate punished the culprits for each of these. The purpose of this paper is to shed light also on the new party system which emerged in Turkey after 2002.

Vote equations are estimated for the seven major political parties. These are fitted to cross-provincial data individually, using ordinary least squares and robust regression methods, and as a system, using seemingly unrelated regressions procedures. The same picture emerges from each of these methods.

Not just those ruling at the time of the earthquakes, but also other parties which were in power when the substandard buildings, were built were held accountable by the electorate. Furthermore, the Turkish voters appear to have allocated the blame rationally, taking into consideration the division of labor in the central government, and the relative influences the parties had on local administrations. Reaction of the voters to government incompetence and corruption was one of the factors which resulted in the emergence of a new party system. In 2002, the AKP, established only a year before, captured almost all of the far-right Islamist, about half of the far-right nationalist, and more than half of the center-right votes in 2002.

Corruption usually makes little difference in the fortunes of politicians. Some recent studies suggest that it takes more than just exposure of corruption to get the voters to react. Politicians pay a significant price only when the corruption touches all political parties across the board, is not accompanied by good governance, and competent non-corrupt alternatives are available. The results provide support for this assertion from the natural experiment that has taken place in Turkey.