Subventions intended for manpower costs in Turkey

Speed and the bureaucracy away of restructuring enterprises require that decisions be taken quickly and also require rapid implementation. These changes and increasingly intense competition have maintained the importance of cost and efficiency. At this point businesses have started searching for an answer as to how they could produce cheaper goods.While technological developments caused by globalization , increasing competition and rapid changes are increasing unemployment, the countries that want to take advantage of the unemployed masses have moved their industrial production to the developing countries which have cheaper labor. These developments have led to widespread use of cheap labor in order to reduce labor costs. While industrial relations are contributing to a divergence from a centralized system, differentiation in employment conditions and flexibility, the rigidities in the labor market (employment protection laws, social assistance and unemployment benefits) are regarded as a source of increasing unemployment.In this master?s thesis the following conditions were found in Turkey: poor quality of the labor force, high population growth, higher labor costs than that of many of the developing and underdeveloped countries, lack of investment and capital accumulation, and as a result of political and economic instabilities, the absence of subsidies applied by the state.