Özet:

In this study we investigate whether sector-specific unemployment in Turkey is explained by natural rate of unemployment or hysteresis hypothesis. We employ sectoral unemployment rate in nine Turkish leading sectors covering the period 1988-2008 and test the stationarity of unemployment rates. For the test we use a recently developed panel unit root test which allows for different number of structural breaks in unemployment series in different dates. Unlike the other studies, the results obtained in this study show that the sectoral unemployment can be explained by a special case of the natural rate of unemployment hypothesis

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