Abstract:

The slowing growth rates cause an increase in unemployment rates reveals a negative correlation between non-profit domestic earnings and unemployment rates, called the "Law of Reading". The purpose of the study is to examine the relationship between the unemployment rate and the output level within the framework of the Law of Reading. In this framework, our work will investigate the validity of the Okun Act in Turkey in the period 1969-2014. The research will take advantage of the Markov Regime Change Model. The ambitious results show that there is a short-term and long-term relationship between the unemployment rate and the outcome level in Turkey during the relevant period. According to the study, the relationship between economic growth and unemployment rates is stronger than the expansion period in the economic time of contagion. This indicates the existence of an asymmetrical relationship.