The economic and social cost of unemployment: The case of Turkey

Today in most countries, the structure of employment and the degree of unemployment become an important indicator of a country's economic and social development. Unemployment is one of the most important social and economic problems of Turkey today. In this study, econometric analysis was carried out to reveal the economic costs of unemployment and literature review social costs. In the theory part of the study was to investigate the social cost of unemployment analysis at the stability of the unemployment and growths series using quarterly data in 2000-2018 has been tested by analyzing the causal direction of the relationship is determined, and finally the impulse-response analysis was conducted. After a specific lag between the variables towards the growth of unemployment was found one sides causality. Firstly, the unemployment problem which is observed as it is critically important for economy, is one of the most critical social affair and is a source of social problems, too. Unemployment is a problem which affects not only the unemployed individual but also his family and his environment and by that junction it affects society. By losing job; the individual, who is in deprivation of income which is provided by job, sometimes can't meet his basic financial requirements. An unemployed individual, who is faced with those financial problems becomes source of some social affairs; unemployment is also one of the source of such socio-psychological affairs that, stress, depression, despair, alienation and losing self-respect, an erosion on moral evaluations, and an increase on committing a crime tendency, committing suicide, divorcing tendency, and an increase on the bad habits. As a result of the study, it was tried to Show what kind of psychological and socio-economic problems the unemployed have experienced. Keywords: Unemployment, Economic Cost, Social Cost, Stationary, Granger Causality Test