Measuring the effect of employment incentives on employment: Ankara example

Political authorities in different countries of the world, make an effort and implement different policies to reduce unemployment or increase employment, which is an important risk factor in economic and social terms. Employment incentives are among the active labor policies used extensively by many countries. These policies generally include support provided to employers such as social insurance premium supports, tax reductions and direct wage subsidies. Premium subsidies increase employment as they reduce the costs of employers and also strengthen the country's economy as it increases firm productivity. Employment incentives being implemented in Turkey since the 2000s, are used heavily today. There are 22 types of incentives that are actively implemented today. Although the terms of applying each of these incentives are different from each other, some types of incentives are more functional in terms of providing additional employment. In the study; it has been tried to measure to what extent the incentives providing additional employment affect employment and how much it provides. In this framework, the effects of premium incentives numbered 6111, 687 and 7103 on employment, which are applied to provide additional employment and increase employment, have been analyzed through quantitative research. In the study, the companies located in Ankara Province were determined as the research universe. In the selection of samples, 1586 firms, which have the Nace code in the research population and benefit from the premium incentives numbered 6111, 687 and 7103, were considered. In this context, covariance analysis, correlation analysis, regression analysis and variance analysis were applied with the help of SPSS on the filtered and edited data obtained from the SGK for the years 2016-2019. Accordingly, the findings of the Covariance analysis show that, according to the Nace code distributions, it has been revealed that works or sectors have different effects in benefiting from employment incentives, however, benefiting from incentives has an increasing trend over the years on the basis of works. According to the findings of the correlation analysis, it was found that the effect of the premium incentive numbered 6111 on the induced employment was statistically significant, positive and high, but the premium incentives numbered 687 and 7103 had a statistically significant, positive and moderate effect. In the multiple linear regression analysis, which tries to reveal the effect of premium incentives on induced employment and employment, it was found that premium subsidies that provide additional employment, have a positive and statistically significant effect on induced employment and at the same time increase employment. In addition, it has been concluded that the premium subsidy received within the scope of the premium incentive numbered 6111, affects the incentive employment more than the subsidies received under the other two regulations. Within the scope of one-way analysis of variance, it was revealed that the incentive payments received by firms according to their years of activity differed statistically significantly, thus the financial burden of the firms decreased and thus employment increased. As a result of the study, it is understood that employment incentives applied to increase employment, have a positive effect on employment included incentives and employment. Improvements in these employment policies foreseen to reduce unemployment and increase employment, will contribute to the transformation in the labor market.