The Relationship Between the Exchange Rate, Trade Terms and Employment in Turkey

The objective of this paper is to analyze the impact real exchange rate (RER) on employment and wage using quarterly disaggregated data (ISIC Rev 4 classification) composed 19 industries in Turkey from 2010 2017. This study employed Fixed Effect Model, where industry-specific effects are used control heterogeneity within industry. results reflect that currency appreciation negatively affects employment, though insignificant, whereas it has a remarkably positive wage. Although terms trade have no visible wages, uniquely finds larger distinctly adverse. Nevertheless, interaction between top 25 per cent indicates moderate increase employment. findings domestic causes decrease at industry level. originality includes with Model approach.