The importance of non-precarious employment and its relationship with broadly defined unemployment: Fourier-shin approach

Abstract

This study aims to emphasise the importance of a skilled labor force within the context of Türkiye’s Decent Work Policy. It examines the long-term relationship between non-precarious employment and broadly defined unemployment, using quarterly data from 2009 to 2023. The long-term relationship between the series, found to be stationary at the first difference, was analysed by using the Fourier-Shin cointegration test. Given the results of FMOLS, DOLS, and CCR estimators, all results were statistically significant. It was concluded that broadly defined unemployment caused a change between 0.66% and 0.69% in non-precarious employment in the long term, and the opposite effect occurred. The study’s calculation of non-precarious employment and broadly defined unemployment variables, as well as the examination of the relationship between these two variables for the first time, makes the study original.