TESTING THE UNEMPLOYMENT HYSTERESIS HYPOTHESIS FOR TÜRKİYE BY AGE, GENDER AND FREQUENCY DIFFERENCES: EVIDENCE FROM WAVELET-BASED UNIT ROOT TESTS

Authors : Tuba Çat, Mustafa Kırca

Pages : 1599-1623

Doi:10.54688/ayd.1526649

View : 100 | Download : 130

Publication Date : 2024-12-31

Article Type : Research Paper

Abstract :The main objective of this study is to test the unemployment hysteresis hypothesis by age, gender and frequency differences (period) for Türkiye. For this purpose, monthly data cover a long period between 2005 and 2023.Wavelet transforms of unemployment rates, along with their original values, are used to investigate the hysteresis effect for short, medium, and long-run components. First, the linearity of the series and the significance of structural breaks are tested. The Fourier Augmented Dickey-Fuller (FADF) test is used for linear series with significant structural breaks. The Fourier Kapetanios-Shin-Snell (FKSS) test is used to test the hysteresis hypothesis for non-linear series with significant structural breaks. For series without significant structural breaks, ADF and KSS tests are used. The findings reveal that the hypothesis of unemployment hysteresis in Türkiye differs by age, gender, and frequency differences.
Keywords : İşsizlik, Histerezis Hipotezi, Dalgacık Dönüşümü, Birim Kök Testi