Asymmetric link between economic well-being and labour market equity in Turkey

Abstract

Purpose Female labour force participation (FLFP) is undeniably critical for both developing and developed countries. This study aims to investigate the impact of economic risk on FLFP, controlling economic well-being, fertility rate and education, considering the asymmetric relationship among the indicators in Turkey. Design/methodology/approach Time series data covering years from 1988Q1 to 2019Q4 is deployed for the empirical analysis to identify the long-run asymmetric link. Empirical analysis of the study starts with the employment of the Augmented Dickey-Fuller unit root test with the breakpoint to test for the order of integration of time series and to capture the breakpoints. The Brock-Dechert-Scheibkman test is applied to determine if or not the econometric model is correctly identified. Nonlinear autoregressive distributed lag (NARDL) bounds test is used to examine the existence of an asymmetric link between FLFP and economic well-being. The empirical analysis follows the investigation of the determinants of FLFP through the employment of the NARDL model. Findings The existence of long-run link among the time series is confirmed through the results obtained from the NARDL bounds test. Furthermore, long-run NARDL estimations confirm that (i) positive shocks in economic well-being increases FLFP; (ii) positive shock in education negatively impacts FLFP; (iii) FLFP is negatively affected by economic risk; and (iv) finally, increased fertility rate increases FLFP in Turkey. Originality/value This paper is checked from turnitin for the plagiarism which is estimated to be less than 20%. It is an original paper that fills the gap in literature and provides meaningful insight both for the policymakers and academics.