Jobless growth and its causes: A review for Turkey

The term ''Jobless Growth'' refers to the situation in which even when output, measured in terms of GDP, rises the growth of employment lags way behind. This situation has been seen not only in developing countries but in the industrial economics as well. The latest studies on the estimates of employment and unemployment in the country indicate that the rate of job creation during the years of rapid growth has been poor. In this study we were theoretically examined the empirical literature on unemployment-growth in both Turkey and certain groups of countries. The development of the phenomenon of jobless growth and the relationship between unemployment and growth in countries are explained by graphs and we also look for the elasticity of employment in Turkey. We used ARDL Bounds Test and Toda-Yamamoto Causality Test for the period 1985-2015 to examine the relationship between growth and unemployment. The result of this study confirms that there is a jobless growth in Turkey. In this thesis we have also theoretically discussed the reasons of the jobless growth and the solution proposals of this situation for Turkey.