|Department of Economics|
Employment Dynamics of the Largest Industrial Firms in Turkey (1980 -2006)
(Supervisor: Fatma Doğruel)
The findings show that there exist both job creation and job destruction in all phases of the business cycle for the largest private industrial firms. Recessions/crises (booms) are typically times of high (low) job destruction and low (high) job creation. These firms are heterogeneous in employment behavior and their job reallocation process is long-term in nature. The largest public firms exhibit different employment dynamics from the largest private firms in that the recessionary years are not reflected in their job flow statistics and they are a more homogenous group of firms. Furthermore, at the sectoral level, private manufacturing firms and the largest private manufacturing firms show distinct behavior in the face of economy wide disturbances. Large firms in the Turkish private manufacturing sector have a greater potential to create and destroy jobs than medium-size and small firms. As the firm size grows, net employment growth increases. The diverse effects of recessions/crises on firm size groups are also striking.