Chapter 12: Crisis in Turkey: Aggravating a Segmented Labour Market and Creating New Inequalities
Seyhan Erdoğdu 1. INTRODUCTION Even before the global crisis began to exert its effects on Turkey – more specifically, from 2005 – the country was already experiencing constraints on economic growth. With falling rates of growth and high rates of unemployment, Turkey was facing economic problems well before the outbreak of the recent crisis. Some employment measures to tackle the problem of rising unemployment in Turkey were launched in early 2008. Meanwhile, Turkey has been undergoing structural change in terms of social policy and public administration, which gained pace in particular after 2006. The new system introduced by the Law on Social Security and General Health Insurance of 2006, and the amendments to this Law in 2007 and 2008, reflect the most significant recent changes in the domain of health and social security (SGK 2010). Public administration is another domain which is undergoing structural transformation. Important changes are taking place in the missions and functioning of labour administration at both central and local levels. The effects of the global crisis have combined with the impact of the changes in social policy and public administration which took effect prior to the crisis. This combination of pre-crisis changes at the economic, social and administrative levels with changes triggered by the crisis makes it very difficult to distinguish the effects of the crisis. Another constraint is the fact that the global crisis is continuing and it is impossible to fully anticipate its future depth, duration and scale. Economists vacillate between maintaining that the ‘worst...
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