Turkey : Managing Labor Markets through the Economic Cycle

The Turkish economy was hit hard by the global economic crisis, but recovered fast and strong. The economy had already started to slow down in 2007, but the global financial events of late 2008 led to a sharp contraction starting in the last quarter of 2008 until growth resumed in the last quarter of 2009. The recovery was rapid, with growth reaching 9 percent in 2010 and 8.5 percent in 2011. This study looks at how the labor market fared during the recent downturn and recovery and informs policies to manage labor markets through the economic cycle and address the jobs challenge in Turkey. The study investigates: 1) pre-crisis labor market trends and the structural jobs challenge in Turkey; 2) aggregate and distributional impacts of the recent crisis, and subsequent recovery, on the labor market; and 3) recent policy measures and existing labor market institutions in the context of observed labor market outcomes. Finally, the study links policies to manage labor markets through the cycle with measures to address the longer term, structural jobs challenge in Turkey. Ongoing structural transformations and the large 'stock' of low-skilled workers are behind the jobs challenge in Turkey. Continued urbanization and labor shedding in agriculture, along with the increase in the Working Age Population (WAP), will continue to increase the number of (mostly) young and low-skilled workers looking for non-agricultural jobs. The Turkish Employment Agency (ISKUR) plays a key role in activating low-skilled workers into productive employment. ISKUR has come a long way since 2008, increasing the coverage and quality of vocational training, introducing job and vocational counselors and linking social assistance receipts to registration in ISKUR.

Bibliographic Details

Main Authors:	World Bank, Ministry of Development, Republic of Turkey
Language:	English en_US
Published:	World Bank, Washington, DC 2013-03-15
Subjects:	ACCOUNTING, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET PROGRAMS, ADULT WORKERS, BASIC EDUCATION, BUSINESS CYCLE, CRISES, DEBT CRISIS, DEVELOPMENT ECONOMICS, DISADVANTAGED GROUPS, DRIVERS, EARNINGS GROWTH, EARNINGS INEQUALITY, ECONOMIC DOWNTURNS, ECONOMIC GROWTH, ECONOMIC SLOWDOWN, EMPLOYABILITY, EMPLOYMENT, EMPLOYMENT AGENCIES, EMPLOYMENT GROWTH, EMPLOYMENT PROTECTION LEGISLATION, EMPLOYMENT RATE, EMPLOYMENT RATES, EMPLOYMENT SERVICES, FAMILY LABOR, FEMALE EMPLOYMENT, FERTILITY, FINDING EMPLOYMENT, FIRM GROWTH, FLOW OF PEOPLE, FORMAL SECTOR WAGES, FORMAL SECTOR WORKERS, GENDER GAP, GENDER GAP IN EDUCATION, GROSS DOMESTIC PRODUCT, HEALTH INSURANCE, HOUSEHOLD INCOME, HOUSEHOLD LEVEL, HUMAN CAPITAL, HUMAN DEVELOPMENT, HUMAN RESOURCES, IMPACT OF POLICIES, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INFORMATION SYSTEM, INNOVATION, INTEREST RATES, INVENTORY, JOB CREATION, JOB LOSSES, JOB SEARCH, JOB SEARCH ASSISTANCE, JOB SEEKERS, JOB STATUS, JOBS, LABOR CONTRACTS, LABOR COSTS, LABOR DEMAND, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR LAWS, LABOR MARKET ADJUSTMENT, LABOR MARKET CONDITIONS, LABOR MARKET INDICATOR, LABOR MARKET INDICATORS, LABOR MARKET INSTITUTIONS, LABOR MARKET OUTCOMES, LABOR MARKET PERFORMANCE, LABOR MARKET REFORM, LABOR MARKET REGULATIONS, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR PRODUCTIVITY GROWTH, LABOR REGULATIONS, LAYOFFS, LEGISLATIVE CHANGES, LEVEL OF EDUCATION, LIFE SKILLS, LIMITED JOB OPPORTUNITIES, LIVING CONDITIONS, LOW EMPLOYMENT, LOW LABOR PRODUCTIVITY, MALE WORKERS, MINIMUM WAGE, MINIMUM WAGES, MONETARY POLICY, MORAL HAZARD, NUMBER OF WORKERS, PAID WORKERS, PENSIONS, POLICY RESPONSE, POPULATION PROJECTIONS, PRESENT STUDY, PRIMARY EDUCATION, PRODUCTIVE EMPLOYMENT, PRODUCTIVITY LEVEL, PROGRESS, PUBLIC SUPPORT, PUBLIC WORKS, PUBLIC WORKS PROGRAM, PUBLIC WORKS PROGRAMS, REAL INCOME, REAL WAGE, REAL WAGES, RURAL AREAS, RURAL EMPLOYMENT, RURAL RESIDENTS, SALARIED WORKERS, SECONDARY EDUCATION, SECONDARY SCHOOL, SELF-EMPLOYMENT INCOME, SERVICE DELIVERY, SERVICE SECTOR, SEVERANCE PAY, SEVERANCE PAYMENTS, SKILLED LABOR, SKILLED WORKERS, SOCIAL BENEFITS, SOCIAL NEEDS, SOCIAL POLICIES, SOCIAL PROTECTION, SOCIAL SECURITY, SOCIAL SUPPORT, TEMPORARY EMPLOYMENT, TEMPORARY WORKERS, TOTAL EMPLOYMENT, TOTAL FACTOR PRODUCTIVITY, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT ASSISTANCE, UNEMPLOYMENT BENEFITS, UNEMPLOYMENT DURATION, UNEMPLOYMENT INSURANCE, UNEMPLOYMENT INSURANCE FUND, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, UNEMPLOYMENT SPELL, UNIVERSAL PRIMARY EDUCATION, UNPAID FAMILY WORKERS, URBAN AREAS, URBAN WORKERS, URBANIZATION, VOCATIONAL COURSE, VOCATIONAL TRAINING, VULNERABLE GROUPS, WAGE BILL, WAGE EMPLOYMENT, WAGE GAP, WAGE GROWTH, WAGE INEQUALITIES, WAGE POLICIES, WAGE RATES, WAGE SECTOR, WORK EXPERIENCE, WORK REQUIREMENTS, WORK SHARING, WORKER, WORKERS, WORKING, WORKING HOURS, WORKING WOMEN, WORKING-AGE POPULATION, YOUNG PEOPLE, YOUNG WORKERS, YOUTH EMPLOYMENT, YOUTH LABOR, YOUTH UNEMPLOYMENT, YOUTH UNEMPLOYMENT RATE,
Online Access:	http://documents.worldbank.org/curated/en/2013/03/18180888/turkey-managing-labor-markets-through-economic-cycle https://hdl.handle.net/10986/15965
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