Abstract
INVESTIGATION OF STATIONARY PROPERTIES OF UNEMPLOYMENT SERIES FOR TURKEY: LINEAR AND NONLINEAR UNIT ROOT TEST WITH STRUCTURAL BREAKS
It is a necessity to know the properties of the series that used in time series analysis. The information that series have like about structural break, linearity and frequency is important. With determination the stationarity properties of the unemployment rate series, we obtain two different results: natural unemployment rate and unemployment hysteresis. In this study, the stationarity properties of the unemployment data for the Turkish economy have been examined to cover the period between January 2014 and January 2023. Unit root tests that are conventional, structural break and nonlinear have been used as the method. As a result of conventional, one structural break and nonlinear unit root tests show that unemployment hysteresis is valid. Nevertheless, the results of the unit root test with two structural breaks and nonlinear wavelet-based unit root test with structural breaks accept that the natural unemployment rate is valid.
Keywords
Unemployment, Nonlinear unit root test, Nonlinear Wavelet Unit Root Test with Structural Breaks.
