Abstract:

Participation in the labour force is of importance for increasing economic activities and ensuring growth and development. The aim of the study is to examine the socio-economic and demographic factors on the decision-making of individuals in the working age and the effects of the 2008 financial crisis with quality-dependent variable panel data models. For this purpose, the study uses the 2007-2010 Revenue and Life Conditions Research Panel Data Set, which covers the 2008 crisis. Due to the low participation of women in labour in Turkey, different models for women and men are predicted and compared. According to the findings obtained, the chances of participation in the workforce in both women and men are increasing during the crisis period. Increase in employment participation, the unemployment rate in women and the unemployment rate in men, is due to an increase in employment and unemployment. Being a college graduate is an important factor in women’s participation in labor and employment. Marriage and having a small child in the house reduce the chances of women participate in labor, while increases the chances of men.

Abstract:

The labor force participation is important for the growth and development by increasing the economic activities. This study aims to investigate the socioeconomic and demographic factors and the effects of 2008 financial crisis influencing the labor force participation decisions of individuals in working age using discrete dependent variable panel data models. For this purpose, the 2007-2010 Income and Living Conditions Survey Panel Data Set covering the 2008 crisis is used. Since women’s labor force participation rate in Turkey is low, separate models are estimated for men and women enabling us to compare the results. According to the findings, the probability of labor force participation is increasing in both women and men during the crisis. The increase in labor force participation is due to the increase in unemployment in women and employment and unemployment in men. Having a university degree is an important determinant of women’s labor force participation and employment. While being married and having a child decrease the probability of labor force participation for women, increase the probability of labor force participation for men.

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