Abstract:

Unemployment rate is one of the important and critical indicators used to analyze the economic situation of countries. Hysteresis is a concept that indicates that shocks have permanent effects on unemployment. For this reason, the effect of temporary shocks on unemployment is analyzed with the Unemployment Hysteresis Hypothesis. The existence of unemployment hysteresis is among the frequently researched subjects in the literature. It is thought that this study will contribute to the literature in terms of using rare variables. In the study, unemployment data between 1988 and 2020 in Türkiye were evaluated not only for total unemployment, but also separately for women, men and total unemployment. These variables, which are not the subject of much research in the literature, were analyzed separately by using the Augmented Dickey Fuller Test, Phillips Perron Unit Root Test, Zivot Andrews Unit Root Test, Lumsdaine Papell Unit Root Test with Structural Break and Lee Strazicich Unit Root Test with Structural Break. As a result of the study conducted with more than one unit root test, it is seen that the unemployment hysteresis hypothesis is valid on female, male and total unemployment in Türkiye for the period determined in most of the unit root tests.

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