Abstract:

The cause of unemployment, economic and social costs and all countries' economic policies are among the priorities. Unemployment results in the loss of income and decrease in the living standards of individuals, decrease in national income and tax revenues and budget disadvantages are among the main economic costs of unemployment. In addition, social deprivation and social disturbances and their resulting crime rates, increased suicide and divorce rates, moral disturbances, health problems, and the decrease in life expectancy are also the main social costs of unemployment. However, the unemployment rate shows significant differences between countries. Identification of the causes of differences in unemployment rates between countries is important for the determination and implementation of the right policies in the fight against unemployment. In this context, unemployment has a large number of corporate, economic and social determinants. In this study, the panel cause analysis developed by Dumitrescu and Hurlin (2012) also took into account the limited empirical literature in this study, and in the period 2000-2016 the interaction between labour market regulations and unemployment in 36 OECD countries was analyzed. The study found that labour regulations had a significant impact on unemployment.

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