The relationship between technology and employment in Turkey

Technological development is a key determinant of economic growth through increasing efficiency, information dissemination, educational attainment, foreign investments and new production methods. This process also affects the structure and qualifications of employment. In this context, technology leads to structural change in the labor market and transformation of the skills required in the market. The effect of technology on the labor market is highly controversial in the literature. Some scholars argue that technological development reduces labor demand and increases unemployment rates. Others advocate that technological advances expand the market by creating new jobs as well as increasing employment opportunities. In this study, the effects of technology on employment have been investigated as compared in terms of Turkey and the world economies. According to the results of the study, the resources allocated to R&D activities in Turkey are highly limited. This situation narrows down the skill-intensive employment opportunities. However, the unemployment rate of high-skilled labor in Turkey is quite high as well. Other results of the study show that in Turkey human resources required for R&D are insufficient and the innovation activities of the enterprises are positively related to the number of employees. For the countries, as the level of development increases innovation capacity also increases. The results also indicate that technological advances lead to an increase in the unemployment rate in the low-income countries but a decrease in the unemployment rate in the high-income countries.