Özet:

Business cycle is defined as increases and decreases in real GDP. Real wages affect these increases and decreases in real GDP procyclically. Moreover, the share of real wages in real GDP is also procyclical. It is very important to test whether real wages, which are one of the basic characteristics of business cycle, are procyclical in the economy of Turkey, as this would provide an important evidence for the business cycle theory. In this study, It is searched that whether the real wages in Turkey are procyclical or not. For the 1998–2012 period, the quareterly data that is obtained from the Central Bank of Turkey is used. By using var analysis, cause and effect functions and the variance decomposition were derived. According to test results, contrary to business cycle theory, real wages are counter cyclical.

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