Main factors of unemployment in Turkey

This study attempts to assess the main factors which are affecting unemployment behavior in Turkey. The candid variables are chosen in such a way that some relations have been enunciated for I’uikey and for some other countries. This research is trying to analyze the unemployment behaviour mainly in two time periods: The first scope is the period 1980-1990. The 1980s are characterized for its own features as a new era in Turkey. The relations for this period are .searched for ten variables: Unemployment ( with one lag), energy supply, credits, money supply, capital investments, investments realized by receiving subsidies from the government, inflation. Gross National Product, real wages and total labor force. Among these ten variables, stepwise variable selection method identified the statistically significant variables and by these variables a GLS model is formed in explaining the unemployment level. The second scope was the period 1970-1992 and the variables are labor productivity, import-export wedge, real wages and inflation which are used in explaining unemployment rate and level. It was found finally that capital investments influence the unemployment level on the one side (for the first period), labor productivity, import-export wedge, real wages and inflation affect unemployment level on the other side (for the .second period) and the labor productivity and import-export wedge affect also (for the second period) unemployment rate.