Abstract:

According to classical economists, the wage that determines the labor supply is the real wage rate. It is accepted in classics that the substitution effect is bigger than the income effect. In Keynesians, the factor that determines the labor supply is accepted as the nominal wage. This circumstance causes to labor suppliers to fall into error. Monetarist economists accept the labor supply as the function of the expected wage. With reference to them, the selection between working and relaxation is made based on the expected wage level. The sum of employees and unemployed in a country is called as the labor supply.  In this context; In this research that made an econometric analysis of the factor determine the labor supply in Turkey case, the labor supply was used as the affected factor. The influencing factors are Inflation (CPI), Manufacturing Industry Production Index (Q), Labor Cost Index (W), Jobless Rate (İO), Labor Productivity(PL), GDP Growth Rate (GR) and Real Export (RX) variables. According to the econometrical results of the research, there is a long termed relationship between inflation, jobless rate, real exportation, labor productivity, real wage, growth, and labor supply.

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