Current Methods and Applications in Econometrics
Determinants of Unemployment: An Empirical Analysis for OECD CountriesUmut Akduğan, Seyhun Doğan
Determination of the factors that led to unemployment is quite important in the implementation of policies aimed at solving unemployment, which is one of the main problems in both developed and developing countries. In addition to the negative macroeconomic indicators brought about by the global economic crises, findings on the impacts of labour market regulations on employment have been revealed through empirical studies. In this study, determinants of unemployment are examined with macroeconomic variables and labour market institutions variables by using panel data set related to selected OECD countries. However, unlike many other studies on the subject, panel time series methods are used in this study, and variables affecting unemployment are examined by estimating the panel VAR model. When the findings are evaluated, it is concluded that macroeconomic variables have an apparent effect on unemployment as expected and also labour market institutions such as labour market programmes and minimum wage have a significant effect on unemployment.