The Determining Factors of Youth Unemployment in Developing Countries: The Case of Turkey

Abstract

The problem of unemployment depends on the demand structure and volume of the production system, which is the redistribution mechanism. The results of unemployment analysis of each country show that the young population is the most affected segment in this group. Because the economic and social factors as well as the problems in the labor market constitute a critical threshold in the transition from the younger genera-tion education process to the business life. In this direction, unemployment emerges as an important macroeconomic problem that is common among young people and needs to be solved recently. This problem is not only the case of developing countries but also the developed coun-tries. Because unemployment and especially the social and psychological aspects as well as the economic dimension of youth unemployment are increasing the importance of this issue. In this study, the determinants of youth unemployment, which are more prominent in developing countries, and their impact on youth unemployment, have been tried to be examined with the help of the Johansen co- integration test and error correction model, taking advantage of the 1988-2016 period data. The results of the analysis indicate that economic crises will reduce youth employment and increase in per capita income will decrease young unemployment problem in long term. However, adult labor unemployment, level of openness and foreign direct investment have had a negative impact on young employment in the long run.