The effects of youth unemployment on wage stickiness after 1980 in Turkey

In the economic literature wage stickiness issue which is fruquently put emphasis on, is one of the basic determinants of analyses about labor market. Wage stickiness takes over in arguments about occurence of equilibrium in labor markets and unemploment relation is discuessed at most studies and researches, too. However, there have been too few studies about analyzing the linkage between wage stickiness and youth unemployment which has some characteristic features and has reached high degrees in recent years.In this study the effect of youth unemploment rates which has been quite important problem in our country on wages is investigated. For that purpose it is referred theories that explain the wage rigidities and is discussed youth unemployment problem in our country thereby examining the general features of Turkish labor market. Also, the effect of youth unemployment on wage stickiness in our country is tested by using emprical method and is founded that higher increases in youth unemployment rates than increaeses in unemployment rates rises wage stickiness in Turkey.