MarketsFactor Markets

Econ 102Spring 2014

Markets

• Goods and Services Markets-• Factors and Production Markets –– Capital, Labor

• Financial Markets- – Financial Assets.

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Turkish Labor Market 2012 (in thousands)

Labor Force Participation and Unemployment rate

• Labor Force Participation Rate:(Labor Force/Working Age Population)x100= 48.6 %

• Unemployment Rate: (Unemployed/Labor Force)x100= 9.9%

(Non –agricultural U% = 12.1 %) (Youth U% = 17.4%)

Turkish Labor Market

December 2012 (in thousands) or (in %)

Kurumsal olmayan nüfus (non-institutional pop) 73326

15 ve yukarı yaştaki nüfus (population above 15 yrs) 54438

İşgücü (Labor Force) 26431

İstihdam (Employment) 23817

İşsiz (Unemployment) 2615

İşgücüne katılma oranı (%) (labor force participation rate) 48.6 %

İstihdam oranı (%) (employment rate) 43.8 %

İşsizlik oranı (%) (unemployment rate) 9.9 %

İşgücüne dahil olmayanlar (not in the labor force) 28007

Labor Force Participation Rate in CountriesWorld Bank Statistics

Per Capita GDP (2012 at 2005 constant US dollars)

U%

Unemployment rates 1996-2011

Definition of Unemployment

• US: Current Population Survey, Current Employment

Statistics, Office of Workforce Security. • Unemployed for 15 weeks or more.• Lost their job or completed a part-time job.• Unemployed and actively looked for a job in the last 4

weeks.

• TURKEY: TUIK• Looked for a job in the last 3 months, • Can be employed within 15 days.

Unemployment Benefits

• US: lost his/her job involuntarily, up to 26 week, based on amount of earnings and the number of quarters worked, (average is $293 weekly)

• Germany: 12 months contribution prior to loosing his job, 60 % of his salary, for 12 months, longer if older than 55 (max. 2964 euro).

• Turkey: has to apply within 30 days of loosing job, should have been working 120 days when become unemployed, should have worked a min of 600 days prior with security payments, 40% of the salary but less than 80 % of the

min.wage.

Unemployment types

1. Frictional UnemploymentNatural

Rate of Unemployment

2. Structural Unemployment

3. Cyclical Unemployment