The Impact of Oil Prices on Youth Unemployment in Türkiye
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https://doi.org/10.5281/zenodo.10035105Keywords:
Oil Prices, Youth Unemployment, FMOLS, DOLS, CCRAbstract
One of the most fundamental components of increasing a country's production capacity is employment. Unemployment, which is defined as the exclusion of a part of the labor factor in the employment process, causes many economic, social, and psychological problems in a country. Economic stagnation and rising costs are one of the most important causes of unemployment. In terms of costs, the price of oil, which is both used as raw material in production and as an essential means of transport, ranks high. Therefore, for an oil importing country, the price of oil is an important factor in economic growth, production, and employment. For countries to achieve a successful process of economic growth and development, it is highly important that unemployment is at the level of natural unemployment. Young unemployed people (aged 15-24 years) are among the most troubled segments of unemployed individuals, and they are an active part of shaping the present and future of countries. In this context, this study aims to determine the effect of oil prices on youth unemployment in Turkey. In this study, where oil prices are used as an independent variable, three models, namely general, female, and male youth unemployment, are constructed. According to the results of the study, while the increase in oil prices increases youth unemployment in all three models, the highest increase is observed in female youth unemployment. This situation shows that women are easily excluded from the labor market in developing countries.
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