The Extent of Informal Employment: An Econometric Analysis

In this study, the effects of economic growth, unemployment and inflation on the informal employment is analyzed by using Augmented Dickey-Fuller unit root test (ADF) and least square method for the years between 2002 and 2016 in Turkey. Empirical results of the analysis show that, the coefficient of employment variable is positive and statistically significant. The coefficient of inflation variable is also positive, but it is not statistically significant. On the other hand, the coefficient of economic growth variable is negative and statistically insignificant. The results of the study reveal that a 10% increase in unemployment leads to a 4% increase in the informal unemployment