The existence of vacant jobs is an indicator of an important growth potential for economies. However, challenges in filling vacancies may restrain this potential. This blog post examines characteristics of these firms by using the Labor Market Surveys of the Turkish Employment Agency.
Flexibility in labor markets should be handled with pros and cons. Even if low costs incurred by firms when meeting the labor demand from the free market is preferable in terms of the economy’s resilience against shocks, the cumulative effect to stem from rapid lay-offs on the economy should also be taken into consideration.
Real wages do not have a significant elasticity for the low-wage group which accounts for approximately 25 percent of the workers in the Turkish economy. As for workers who earn more than the minimum wage, real wages are relatively more elastic.
In this blog post, we classify the firms with the highest level of productivity as frontier firms and investigate the characteristics that distinguish these firms from other firms in terms of employment structure
Yusuf Emre Akgündüz,Yusuf Kenan Bağır,Huzeyfe Torun,Altan Aldan
Recently, productivity gains have continued, while real wages have registered a decline. The impact of the changes in composition of employment and production structure is limited in these developments. The surge in productivity in the industrial sector is a favorable sign for inflation and growth dynamics.